Bitcoin – The Bulls Hit $4,200, but Need $4,500It’s a bullish start to the day, but for a hold onto early gains, Bitcoin will need to avoid a pullback through to sub-$4,250 levels.
Bitcoin gained 3.79% on Saturday. Following on from a 1.21% rise on Friday, Bitcoin ended the day at $4,212.2.
A relatively range bound first half of the day saw Bitcoin move within a $50 range before a broad-based crypto rally kicked in.
Surging from an early afternoon intraday low $4,013.8, Bitcoin rallied to a late intraday high $4,255 before easing back. The rally saw Bitcoin break through the day’s major resistance levels. More materially, Bitcoin avoided a late sell-off from the third major resistance level at $4,212.93.
For the current week, Bitcoin is up 9.9% (Monday through Saturday), with Bitcoin ending the day at $4,200 levels for the first time since 20th December.
Across the top 10 cryptos, it was mostly green on the day. Leading the way were EOS and Bitcoin Cash ABC. The pair rallied by 10.07% and by 8.06% respectively. Close behind was Ethereum, which gained 7.42%.
Bucking the trend on the day was Binance, which fell by 0.45%.
For the current week, there were no outliers. Leading the charge were EOS and Bitcoin Cash ABC, which were up by 48.19% and by 23.44% respectively, from Monday through Saturday. Other notables were Ethereum, up by 19%, Litecoin up by 17.84% and Stellar’s Lumen, which was up by 17.69%.
Trailing the pack were Tron’s TRX, up by 7.36% and Bitcoin. The pair were the only top 10 cryptos that came up short of double-digit gains.
The broad-based cryptomarket rally drove the market cap through to $141.87bn at the time of writing. It’s been quite a rebound for the broader market. The market cap rose by $20bn through the week to hit its highest level of the year.
Volumes have also seen a marked increase through the month, investors were drawn in from the sidelines throughout the week.
On the news front, there’s been plenty of bullish chatter from the more prominent members of the tech world to draw in investors. From a broader adoption perspective, reports of Samsung’s soon to be released Galaxy 10 having a cryptocurrency wallet app also likely contributed. Ease of use would certainly provide crypto holders with greater flexibility to use cryptocurrencies as an alternative to fiat money.
Investors will now be monitoring news from the SEC on the Bitcoin ETF applications. A decision could come at any time, but no later than the first week of March.
At the time of writing, Bitcoin was up by 1.48% to $4,274.6. Momentum from Saturday’s rally continued into the early hours of this morning. Bitcoin rose from a start of a day morning low $4,212.2 to a morning high $4,282.4. The day’s major support and resistance levels were left untested early on.
For the day ahead
A hold above $4,250 levels through the morning would support a run $4,300 levels to bring the first major resistance level at $4,306.87 into play before any pullback.
We would expect Bitcoin to come up short of $4,400 levels and the second major resistance level at $4,401.53 on the day.
For the bulls, the next target is $4,500. We can expect plenty of resistance on the way through to $4,400 levels, however.
Failure to hold above $4,250 levels could see Bitcoin pullback through the morning low $4,212.2 to bring $4,100 levels into play.
Barring a broad-based crypto sell-off, we would expect Bitcoin to steer clear of sub-$4,100 levels and the first major support level at $4,065.67.