Bitcoin – The Bears Take Back the Reins to Deliver a Week in the RedIt’s another bearish morning. A visit to sub-$3,500 levels early in the day could leave the bears in control for the week ahead.
Bitcoin gained 0.83% on Saturday. Following on from a 0.88% rise on Friday, Bitcoin ended the day at $3,564.2.
A bearish start to the day saw Bitcoin fall to a morning low $3,502.9 before finding support to move through to a morning high $3,537.8. A lack of a market catalyst through the day saw Bitcoin fall to a late afternoon intraday low $3,498.8.
The pullback saw Bitcoin steer clear of the first major support level at $3,476.87. For the bulls, Bitcoin called on sub-$3,500 support for a 6th consecutive day. In addition, Bitcoin managed to close out at $3,500 levels for a 4th consecutive day.
After a move back through to $3,500 levels, a late in the day rally saw Bitcoin strike an intraday high $3,581 before easing back. The late rally saw Bitcoin break through the first major resistance level at $3,575.87.
Litecoin stole the show on Saturday. A 5.69% rally through the day continued to support the bullish outlook ahead of this August’s halving. For the rest of the top 10, Bitcoin Cash ABC gained 4.51%, with EOS up by 4.45%.
Finally, bucking the trend through the day, Tron’s TRX slipped by 0.76%. A partial reversal to a previous week 23% rally was to be expected. Pressure came from a number of the majors that are in the red for the current week.
As a result of a lack of news to provide direction for the cryptomarket, Bitcoin continues to languish at $3,500 levels. Bitcoin has now failed to break through to $3,600 levels for a 6th consecutive day. Equally significant are more material gains made elsewhere through the start of the year. While Tron may be leading the back, Litecoin could be the February pick.
In contrast, Ripple’s XRP continues to lag the majors. Ripple’s XRP is down by 12.6%, year-to-date. While Litecoin is setting the early pace in February, Ripple’s XRP could be the dark horse should the bulls manage to take back the reins.
At the time of writing, Bitcoin was down 1.13% to $3,524.1. Bitcoin fell from a start of a day morning high $3,566.8 to a morning low $3,523.5 before steadying.
In spite of the pullback, Bitcoin held above the first major support level at $3,515 early on in the day.
For the day ahead
Bitcoin will need to move through to $3,550 levels to support an afternoon recovery. Sentiment across the broader market will need to improve for Bitcoin to take a run at the first major resistance level at $3,597.2. We will expect that Bitcoin will fall short of $3,600 levels in the event of an afternoon recovery.
Failure to move through to $3,550 levels could see Bitcoin fall back deeper into the red. A fall through the morning low $3,523.5 to sub-$5,200 levels will likely bring the first major support level at $3,515 into play before any recovery.
Bitcoin will likely call on sub-$3,500 support levels before any recovery should the bears continue to control the broader market through the day.