Bitcoin – The Bulls Bring $4,000 Levels into RangeThe bulls come out of hiding, with Bitcoin breaking through to $3,800 levels. $4,000 will be the next target…
Bitcoin gained 1.61% on Sunday. Following on from a 0.17% increase from Saturday, Bitcoin ended the day at $3,735.5.
Rising from a start of a day intraday low $3,655, Bitcoin struck a late morning intraday high $3,790 before hitting reverse. The morning spike saw Bitcoin break through the first major resistance level at $3,714.07 and second major resistance level at $3,751.73.
A late morning pullback to sub-$3,700 levels left Bitcoin range-bound through the afternoon. Support from the broader market kicked in late in the day, with Bitcoin moving back into positive territory and $3,700 levels by the day’s end.
For the bulls, it was the first hold onto $3,700 levels since the previous Sunday and the first run at $3,800 levels since 9th February’s day high $3,800.
For the week, a 3rd consecutive day in the green left Bitcoin down by just 0.33%.
Across the top 10 cryptos, it was green across the board. Ethereum led the way on the day, surging by 8.88% to end the day at $132.34. EOS came in a distant second with a 3.33% rise.
For the week, however, it was a mixed bag. The Sunday rebound gave Ethereum a 6.79% gain for the week, well ahead of the rest of the pack. EOS gained 1.17% off the back of Sunday’s rally to come in 2nd for the week. The only other major in the green was Binance.
Leading the way down was Tron’s TRX, which slid by 7.19%. Litecoin also saw heavy losses, down 6.6% for the week, the losses coming in spite of 3 consecutive days in the green.
For Ethereum, the gains came in spite of a particularly disappointing start to the year on the ICO front. According to Icodata, just $51.13m has been raised year-to-date. The lack of activity is in sharp contrast to the beginning of last year, where a whopping $1,455.5m had been raised within the first 2-months of the year.
The bearish sentiment and regulatory uncertainty have certainly contributed to the downward trend through last year and the early part of this year. There will be hopes of a pickup in activity as the year progresses and the regulatory uncertainty is addressed, though much will depend upon market performance in the coming months.
Ethereum could face significant pressure should the ICO market fail to rebound and then there are the likes of Binance to also consider, which is looking to take a piece of the ICO pie.
At the time of writing, Bitcoin was up by 1.76% to $3,801.1. A bullish start to the day saw Bitcoin rally from a morning low $3,723.6 to a morning high $3,863.0 before easing back.
The early bounce saw Bitcoin break through the first major resistance level at $3,798.67 to come up against the second major resistance level at $3,861.83.
For the day ahead
Bitcoin would need to hold onto $3,800 levels to support another run at the second major resistance level at $3,861.83. Support from the broader market could see Bitcoin break through to $3,900 levels later in the day.
While the bulls will be eyeing $4,000 levels, we would expect Bitcoin to come up short on the day, some profit taking likely to pin Bitcoin back from a rally of old…
Failure to hold onto $3,800 levels could see Bitcoin give up the morning gains. A fall through $3,730 would bring sub-$3,700 levels and the first major support level at $3,663.67 into play. Barring a broad-based crypto sell-off, we would expect Bitcoin to steer clear of sub-$3,700 levels, however, with the bulls having returned to the market over the weekend.