Bitcoin – The Start of a Bull Run or a Blip in the Bears Road to $2,000

The bulls are in the driving seat early on with a Bitcoin hold onto $4,100 levels supporting another run at $4,200 levels later in the day.
Bob Mason
Bitcoin BTC

Bitcoin gained just 0.49% on Tuesday, following a 5.52% slide on Monday, to end the day at $3,882.7, with Bitcoin failing to touch $4,000 levels for the first time since before the late 2017 bull run.

A relatively range bound day saw Bitcoin ease to a late morning intraday low $3,684.1 before finding support, the day’s first major support level at $3,637.37 level untested on the day.

Recovering through the late morning and early afternoon, Bitcoin moved through to a late in the day intraday high $3,959.4, falling shy of $4,000 levels and the day’s first major resistance level at $4,148.97 before easing back to $3,800 levels by the day’s end.

While Bitcoin managed to close out the day in positive territory, Bitcoin lagged a number of the majors through the day to pin Bitcoin’s dominance back to 53.18% for the day, as the crypto bulls looked to take advantage of another week of heavy losses and a bearish start to the week.

The news wires pinned Bitcoin back, with news of SEC Chairman Clayton stating the need for greater market surveillance and custody before being comfortable with the roll out of Bitcoin ETFs contributing to Bitcoin’s lacklustre day.

SEC Chairman Clayton’s comments would have come as little surprise to many, with a string of bad news in recent weeks having weighed on sentiment across the broader cryptomarket, including the news of the U.S DoJ investigating into possible Bitcoin price manipulation through last year’s late rally an example of how little policing there is across the cryptomarket.

On the custody front, recent thefts have provided further support to the SEC’s calls for the need for greater custody to support investor money, with institutional money needing the appropriate oversight and protection.

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At the time of writing, Bitcoin was up 6.06% to $4,117.8, with a bullish start to the day seeing Bitcoin rally from a start of a day low $3,882.9 to an early morning high $4,163.9, before easing back, the early moves seeing Bitcoin break through the day’s first major resistance level at $4,000.03 and the day’s second major resistance level at $4,117.37.

For the day ahead, a hold onto $4,100 levels would support run at the morning high $4,163.9 to bring the $4,200 levels into play before any pullback, while $4,300 levels and the day’s third major resistance level at $4,392.67 will unlikely be tested on the day.

Failure to hold onto $4,100 levels could see Bitcoin pullback through to sub-$4,000 levels and the morning low $3,882.9 before any recovery, sub-$3,800 levels and the day’s first major support level at $3,724.73 unlikely to be tested barring materially negative news hitting the wires.

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