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Bitcoin – The Bears Look for a Way Back

By:
Bob Mason
Published: Dec 21, 2018, 06:17 UTC

It's in the red for Bitcoin, which looks set for its first daily loss of the week, the bulls needing to break through to $4,100 levels to attempt a rebound.

Bitcoin – The Bears Look for a Way Back

Bitcoin rallied by 10.62% on Thursday, following on from a 0.77% gain on Wednesday, to end the day at $4,214.5.

A 6th consecutive day in the green saw Bitcoin wrap up the day at $4,000 levels for the first time since 2nd December, with the bulls looking to take control as the year comes rapidly to an end.

Bullish through the late morning and early afternoon, Bitcoin rallied from a start of a day morning low $3,780.1, to strike a late afternoon intraday high $4,299.

The bullish middle part of the day saw Bitcoin break through the first major resistance level at $3,983.33 and second major resistance level at $4,156.67, before sliding back to call on sub-$4,000 support levels late in the day. Bitcoin managed to bounce back to $4,200 levels by the day’s end to hold above the second major resistance level, while avoiding a pullback to test the first major resistance level at $3,983.33.

A range bound early part of the day left the day’s major support levels untested and, while the Bitcoin bulls have had quite a week, the extended bearish trend, formed at early May’s swing hi $9,999, remained firmly intact, with Bitcoin continuing to fall well short of the 23.6% FIB of $4,816.

Elsewhere in the cryptomarket, Bitcoin Cash ABC continued to grab the headlines with a more than 50% gain on the day, the broad based crypto rally seeing the total market cap rise to $130.62bn, with Bitcoin’s dominance easing back to 53.4%.

In the crypto rankings, Bitcoin still sits way out in front, while battle for the number 2 spot could get interesting should the Bitcoin Cash ABC rally continue.

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At the time of writing, Bitcoin was down 3.06% to $4,085.5, with moves through the morning seeing Bitcoin rally to an early morning high $4,300 before hitting reverse. Pulling back through the mid-morning, Bitcoin fell to a morning low $4,032 before steadying, the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through to $4,100 levels would be needed to support another run at the morning high $4,300, with Bitcoin needing a material shift in sentiment across the broader market to support a breakout to bring $4,400 levels and the first major resistance level at $4,415.63 into play before any pullback.

Failure to move back through to $4,100 levels by the early afternoon could see Bitcoin struggle through the day, a pullback through the morning low $4,032 likely to see Bitcoin fall through to sub-$4,000 levels to call on support at the first major support level at $3,896.73 before any recovery, heavier losses unlikely.

Elsewhere, Bitcoin Cash ABC continued to impress in the early part of the day, up 7.84% at the time of writing but, with the broader market deep in the red through the morning, the bulls may need to come fighting back over the weekend, a choppy 2nd half of the day on Thursday testing investor resolve early on today.

BTC/USD 21/12/18 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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