Bitcoin – Tight Ranges Continue as Support Levels Test Investor ResolveIt’s a positive start to the day but a hold onto $3,900 levels would be needed to avoid a sell-off later in the day.
Bitcoin fell by 0.17% on Saturday. Partially reversing a 0.54% gain from Friday, Bitcoin ended the day at $3,913.
A particularly choppy morning saw Bitcoin rise to an early morning intraday high $3,924 before hitting reverse. Falling short of the first major resistance level at $3,944.33, Bitcoin fell to an intraday low $3,838.9.
The reversal saw Bitcoin slide through the first major support level at $3,888.33 and second major support level at $3,862.67. A late morning recovery saw Bitcoin move back through to $3,900 levels and a range bound afternoon.
For the current week, Bitcoin was up 2.13%, Monday through Saturday. In spite of Bitcoin being stuck in a rut in recent days, it was a positive month of February. Bitcoin rose by 11.7% in the month, reversing January’s losses to give a 2.1% gain, year-to-date, to the end of February.
Across the top 10 cryptos, it was a mixed bag. Binance continued to lead the way. A 4th consecutive day in the green gave Binance an 18.6% gain for the current week. A 3.88% rally on Saturday was only matched by Litecoin, which was up by 3.08% to give a 10.7% gain for the current week.
EOS was the only other top 10 crypto to see green on Saturday, gaining 0.6%. By contrast, Tron’s TRX slid by 3.51%. The reversal left Tron down 2.93% for the current week. Tron was the worst performer amongst the top 10. The only other top 10 crypto to sit in the red for the current week was EOS, which was down by 1.33%.
The mixed fortunes of the top 10 saw Binance overtake Stellar’s Lumen and Tron’s TRX to move into the number 8 spot by market cap. EOS managed to hold onto the number 4 spot in spite of Litecoin’s gains in the week. It may just be a matter of time, however. Litecoin’s halving later this summer continues to provide support and that’s before considering adoption.
At the time of writing, Bitcoin was up by 0.16% to $3,919.2. Moves through the early morning saw Bitcoin rise to a morning high $3,925.0 before easing back. Bitcoin managed to avoid sub-$3,900 levels with an early morning low $3,912.0. The day’s major support and resistance levels were left untested through the early hours.
For the day ahead
A hold onto $3,900 levels through the morning would be key to avoiding another sell-off later in the day. Support from the broader market would give Bitcoin a break through the first major resistance level at $3,945.03. We would expect Bitcoin to continue to fall short of $4,000 levels, however. Bitcoin would likely be pinned back by the second major resistance level at $3,977.07 and the current week’s high $3,988.
Failure to hold onto $3,900 levels would see Bitcoin fall through the first major support level at $3,859.83. In the event of a broad-based sell-off, Bitcoin could test the second major support level at $3,806.87. We would expect Bitcoin to steer clear of sub-$3,800 support levels, barring a crypto meltdown event later in the day.