Bitcoin – The Bears Take another Bite Out of the Cryptos

The bears hit Bitcoin and the broader market in the early hours. Tuesday’s tight ranges give little incentive for the bulls to jump back in.
Bob Mason
Bitcoin 1
Bitcoin 1

Bitcoin rose by 0.64% on Tuesday. Reversing a 0.32% fall from Monday, Bitcoin ended the day at $3,513.0.

Recovering from an early morning intraday low $3,475.1, Bitcoin moved through to a late morning intraday high $3,517.5 before easing back.

Steering clear of the first major support level at $3,469.63, Bitcoin came up against the first major resistance level at $3,517.03 before pulling back.

For the bulls, the good news was a hold onto $3,500 at the day’s end, but that was about it. A particularly range bound day, with a spread of just $42, continues to be a test. The lack of upward momentum and relative silence on the news wires has seen Bitcoin become almost docile. That’s never a good thing for investors looking for volatility and double-digit returns. Even the Forex world is becoming all the more alluring at present.

For those looking for a bounce back, one warning signal should be the fact that Bitcoin has not seen a large inflow of investor money at current levels. The lack of interest suggests that current valuations continue to be considered inflated.

How low does Bitcoin need to go to draw in sidelined investors and those looking to finally get in on the act?

Sub-$3,000 would certainly be a better number than $3,500. But even if Bitcoin does slide back to sub-$3,000 it may not end there. Adoption may have improved, but it’s nowhere near the levels needed to create a supply and demand imbalance to generate returns similar to those seen back in 2017.

Elsewhere

It was a mixed bag through the day. Making gains alongside Bitcoin were Litecoin, Ripple’s XRP and EOS. Litecoin led the way amongst the top 10, with a 0.89% rise.

On the slide were Bitcoin Cash SV, Bitcoin Cash ABC, Stellar’s Lumen and Tron’s TRX.

Bitcoin Cash SV was the worst performer on the day, sliding by 3.7%, with Tron’s TRX not far behind, down by 2.1%.

Ethereum managed to hold on, with just a 0.04% fall, though a return to sub-$100 levels remains on the cards near-term.

The bias continued to be in favor of the bears on the day.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was down by 1.86% to $3,447.5. A particularly bearish start to the day saw Bitcoin slide from a morning high $3,521 to a low $3,434.3 before finding support.

Falling shy of the first major resistance level at $3,528.63, Bitcoin slid through the first major support level at $3,486.23 to call on support at the second major support level at $3,459.47.

For the day ahead

Bitcoin will need to move back through to $3,500 levels to support a 2nd half of a day recovery. A move back through the morning high would bring the first major resistance level at $3,528.63 into play. We would expect Bitcoin to come up short of the second major resistance level at $3,544.27.

Failure to move back through to $3,500 levels will likely leave Bitcoin deep in the red. A pullback through the morning low $3,434.3 would likely bring $3,300 levels into play for the first time since mid-December.

For the bulls, support at the third major support level at $3,417.07 could save the day, but there is an inevitability should sentiment across the broader market fail to improve in the coming days.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US