Bitcoin – The Bulls Fail to Breakout from $4,000. Does that Spell Trouble?It’s back in the red for Bitcoin. Avoiding sub-$3,970 levels would support a move back through to $4,000 levels. A breakout may be a challenge, however.
Bitcoin fell by 0.43% on Sunday. Partially reversing a 1.95% gain from Saturday, Bitcoin ended the day at $4,000.
A start of a day intraday high $4,017.2 saw Bitcoin come up short of the first major resistance level at $4,064.37 before hitting reverse.
Falling through the morning, Bitcoin slid to a mid-morning intraday low $3,959.4 before finding support.
Coming within range of the first major support level at $3,952.07, Bitcoin managed to move back through to $4,000 levels. Bitcoin struck a 2nd half of a day high $4,015.9 before easing back.
For the Bitcoin bulls, it was a second consecutive hold onto $4,000 levels by the day’s end. The day’s losses left Bitcoin with a 2.96% gain for the week, Monday through Sunday.
Across the top 10 cryptos, while it was a mixed bag on Sunday, it was a sea of green for the week.
Binance Coin and Litecoin led the way, with gains of 25.72% and 18.58% respectively. Chasing the pair was Stellar’s Lumen. An 11.6% rally on Sunday gave Stellar’s Lumen a 14.8% gain for the week.
Across the rest of the top 10, the upside was relatively minor. EOS came in a distant 4th in the week, gaining 5.06%
There was no particularly bullish news to drive Stellar’s Lumens on Sunday and the broader market through the week. A lack of a sell-off, with Bitcoin hovering at around the $4,000 level, provided some support.
Moves through the early part of this year had seen Stellar’s Lumen fall behind the majors, in spite of increased crypto adoption. Considered to be a bridge between crypto and fiat money, increased adoption is expected to be positive for Stellar’s Lumen.
While Bitcoin managed to hover at around the $4,000 handle, it now all hangs on the SEC’s review of the VanEck Bitcoin ETF proposal. Following the extended government shutdown, a decision is anticipated anytime, though the deadline is 5th April.
At the time of writing, Bitcoin was down by 0.36% to $3,985.7. Moves through the early hours saw Bitcoin fall from a morning high $4,009.2 to a low $3,981.0 before steadying. The moves through the early hours left the day’s major support and resistance levels untested.
For the day ahead
A move back through to $3,995 levels would support another run at the first major resistance level at $4,025. Bitcoin would need to avoid a fall through to sub-$3,970 levels to support a recovery of the early losses. Barring a broad-based crypto rally, we would expect Bitcoin to fall short of the second major resistance level at $4,050.
A continued failure to breakout from $4,000 has seen resistance buildup in recent days, which will likely pin Bitcoin back.
Failure to move back through to $3,995 levels could see Bitcoin take a bigger hit in the day. A fall through to $3,970 levels would bring the first major support level at $3,967.2 into play. Failure to recover from any pullback could bring the second major support level at $3,934.4 into play. Investor resilience could be tested should Bitcoin fail to break away from its current ranges.