Bitcoin – The Bears Take Big Bite Out of the Bulls

The bears are out in force as the crypto market ends the week on a bad note and kicks off the new one in the red…
Bob Mason
Crypto is down

Bitcoin slumped by 2.65% on Monday, following on from a 0.94% fall on Sunday, to end the day at $3,501.9.

A particularly bearish start to the week saw Bitcoin tumble from a start of a day intraday high $3,597.9 to an afternoon intraday low $3,445.3 before steadying.

Tracking the broader market through the day, Bitcoin slid through the first major support level at $3,543.5 and second major support level at $3,489.9 before breaking back through the second major support level late in the day.

A recovery to $3,500 levels by the day’s end was the only positive for the bulls, with another string of tight ranges leaving the bulls to lick their wounds, as investors continue to take a more cautious position ahead of a number of key events anticipated in the first half of the year.

Elsewhere, it was a sea of red across the majors, with even the market favorite Tron taking a tumble through the day. While none of the top 10 got through the day unscathed, a number of the major saw particularly heavy falls at the start to the week.

Bitcoin Cash ABC and SV ended the day with 7.25% and 9.14% losses respectively, with Stellar’s Lumen down by 7.2%. Ripple’s XRP and Litecoin saw more moderate losses of 3.97% and 3.31% respectively, while Bitcoin was the best performer on the day.

Having managed to hover around the $120bn mark, the total crypto market cap slid to $113.12bn, with Bitcoin’s dominance jumping to 53.6%, anything above 52% a bearish signal for Bitcoin and the broader market.

Once more, the lack of positive news and possible expectation that the SEC will defer or even support the rejection of the 8 Bitcoin ETF applications from last year weighed on the cryptomarket.

The bulls would have hoped for a bullish start to the year, investors were given the opportunity to dust off a dire 2018. January has been far from bullish, however, with Bitcoin down 8.63% for the current month. While sub-$3,000 levels have been avoided, ripping the plaster off may ultimately be what Bitcoin and the broader market needs before it can settle.

We still support a sub-$3,000 low before any recovery is possible and, for the bulls, of greater concern will be where Bitcoin sits at the time of the SEC’s announcement and, perhaps more importantly, the G20’s rollout of rules and regulations over the summer.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was down by 0.31% to $3,491.1 at the time of writing, with Bitcoin giving up $3,500 levels early as the broader market saw Sunday’s reversal continue into the early hours.

Bitcoin’s going to need to move back through to a morning high $3,517.5 or face the threat of a pullback to sub-$3,400 levels later in the day. With red across the broader market in the early hours, any hope of even a dead cat bounce looks slim.

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