Bitcoin – The Bears Leave Bitcoin at sub-$3,500 LevelsIt’s in the red and down to $3,400 levels for Bitcoin. Failure to recover to $3,500 levels could see $3,300 levels come into play.
Bitcoin fell by 1.76% on Sunday. Reversing a 0.83% gain from Saturday, Bitcoin ended the day at $3,501.7.
A late in the day rally on Saturday gave Bitcoin a positive end to the day. There was no such luck on Sunday. Bitcoin hit reverse from the start of the day. Falling from an intraday high $3,566.8, Bitcoin fell to a late intraday low $3,470.1.
The reversal saw Bitcoin fall through the first major support level at $3,515 to come within range of the second major support level at $3,465.8. The start of the day high saw Bitcoin fall well short of the first major resistance level at $3,597.2.
For the week, Sunday’s reversal left Bitcoin down 2.65%, Monday through Sunday. As a result, Bitcoin saw its 3rd week in the red out of the last 4.
The bearish sentiment through the week was evident amongst the top 10 cryptocurrencies. Leading the way down was Stellar’s Lumen, which tumbled by 14.53%.
Not too far behind were Tron’s TRX and Bitcoin Cash SV, which ended the week with 12.7% and 10.5% losses.
Bucking the trend through the week was Litecoin and EOS. Litecoin gained 2.65%, in spite of a 3.8% slide on Sunday. EOS gained 0.74%, gains from earlier in the week being wiped out by a 3.5% fall on Sunday.
It’s been an interesting start to the year. While Litecoin has enjoyed 3 consecutive weeks of gains, Ripple’s XRP has fallen for 5 consecutive weeks. While Litecoin lightening will have contributed to the upward momentum, increased adoption in evidence, the upward momentum continues to be attributed to August’s halving event. For Ripple’s XRP, the continued adoption of Ripple Lab’s cross border payment platforms appears to be having limited price impact at best. Even SWIFT’s trial of R3’s platform only provided temporary relief.
It was yet another quiet day on the news front, with the end of week reversal leaving the total cryptomarket cap at $113.86bn. Going into the week, the total market cap had stood at $118.5bn,
At the time of writing, Bitcoin was down 0.14% to $3,497.0. Moves through the early morning saw Bitcoin fall from a morning high $3,508.3 to a low $3,492.3. Bitcoin managed to hold above the first major support level at $3,458.93 while falling short of the first major resistance level at $3,555.63.
For the day ahead
Bitcoin will need to move through the morning high to $3,512.87 to support a recovery of last week’s losses. Support from the broader market would be needed for Bitcoin to breakdown resistance at $3,500 to take a run at the first major resistance level at $3,555.63. Bitcoin will likely fall short of $3,600 levels on the day.
Failure to move through to $3,512 levels could see Bitcoin pullback through the morning low $3,492.3 to bring the first major support level at $3,458.93 into play before any recovery. Bitcoin will likely avoid sub-$3,400 levels in the event of a broad-based crypto sell-off.