Bitcoin – The ReboundBitcoin’s on the move and things could get interesting should Bitcoin break through to $4,800 levels early in the week…
Bitcoin fell by 1.53% on Sunday, partially reversing a 3.99% rise on Saturday, to end the day at $4,071.7.
In spite of the day’s loss, Bitcoin managed a 23.4% gain for the week, in what was just the 4th weekly gain since the week of 17th September, when Bitcoin was sitting up at $6,000 levels.
Relatively range bound through the morning, Bitcoin only managed a late morning intraday high $4,216 before easing back, Bitcoin falling short of the day’s first major resistance level at $4,227.57 on the day.
An early afternoon pullback saw Bitcoin fall to an intraday low $4,033, Bitcoin managing to avoid sub-$4,000 levels and the first major support level at $3,980.87 to close out the day within some relatively tight ranges, a move back through to $4,100 levels as bullish as it got late in the day.
For the Bitcoin bulls, holding onto $4,000 levels and avoiding a pullback to sub-$4,000 levels intraday was the positive, with Bitcoin last avoiding sub-$4,000 levels back on 2nd December.
While the gains for the week were impressive by recent standards, Sunday’s loss did buck the trend across the broader market, with many of the majors enjoying solid gains on the day.
Reflecting the bullish sentiment going into the holiday season is Bitcoin’s dominance, which has eased back further to 52% at the time of writing, with the total crypto market cap rising to $141.06bn, its first visit to $140bn levels since the end of November.
The recent recovery has certainly been good news for Bitcoin miners and the Bitcoin network, with Bitcoin’s hash rate rising from 34.3022E back on Friday to 44.6996E on Sunday, mining support certainly needed as Bitcoin sees increase usage in the real world as an alternative to fiat currencies.
As we saw at the start of last week, Monday’s moves will be key again, with another day of solid gains likely to raise the prospects of a bearish trend reversal, an end of year momentum rally certainly not off the cards, with Bitcoin capable of bouncing back to $6,000 levels going into the New Year.
At the time of writing, Bitcoin was up 6.32% to $4,329.2, with moves through the early hours seeing Bitcoin break through the first major resistance level at $4,180.8 and second major resistance level at $4,289.9 to strike a morning high $4,380.0 before easing back.
The bullish start to the day will likely draw in side lined investors, with a move back through the morning high $4,380.0 likely to bring $4,400 levels and the first third major resistance level at $4,472.90 into play, the bulls immediate target being a break through to $4,500 levels to test selling pressure at the 23.6% FIB of $4,816, last tested back on 19th October.
A hold onto $4,300 levels through the morning will be needed for Bitcoin to avoid a reversal later in the day, with a fall through to sub-$4,100 levels likely to bring the first major support level at $3,997.8 into play before any recovery.
Any pullback into the red could bring the Bitcoin Rebound to a rapid end, an uninterrupted momentum rally needed at the end of the year to brush off a particularly dire year for Bitcoin and the broader market.