Bitcoin – With the Bulls Struggling at $4,100, is a Pullback on the Cards?It’s back in the green for Bitcoin, but with $4,100 proving to be a key pivot point, a slide back to sub-$4,000 could result from tight ranges.
Bitcoin slipped by 0.24% on Thursday. Partially reversing a 2.75% rally from Wednesday, Bitcoin ended the day at $4,092.6.
A relatively range-bound day on Thursday saw Bitcoin rise to a morning high $4,114.4 before easing back. Falling well short of the first major resistance level at $4,145.97, Bitcoin fell to an early morning intraday low $4,064.0.
Steering well clear of the day’s major support levels, Bitcoin managed to move back through to $4,090 levels. Bitcoin was unable to break back through to $4,100 levels, however, in what was a particularly range-bound afternoon.
Across the top 10 cryptos, it was another mixed day. Bucking the trend through the day was Binance Coin, which managed to gain 0.3%.
After a bearish start to the week, Binance found strong support to move back through to $17 levels and keep the bull-run alive.
In stark contrast, is the shift in sentiment towards Tron’s TRX, which recently stumbled out of the top-10, by market cap. March has been a punishing one for the Tron bulls. Bucking the trend from across the broader market, Tron was down by 1.8% for the current month.
In contrast, Binance was up by 61.2% and Cardano’s ADA, a new entry into the top 10, was up by 52.2%.
With just the weekend left before wrapping up the 1st quarter, it’s been a far better start to the year than last year. Stellar’s Lumen was the only member of the top-10 to be in the red, Year-to-date. Down by 4.41%, there’s going to need to be a weekend rally to wipe out the 1st quarter loss.
Delivering more than 100% returns over the 3-months, were Binance and Litecoin. Binance was up by 167%, while Litecoin was up by 102% to the end of Thursday. The Binance Launchpad platform and Litecoin’s halving event in the summer differentiated the pair from the broader market.
The moves through the quarter have led to the crypto market cap rise from $125bn to $143.5 levels at the time of writing, which is also a current year high.
At the time of writing, Bitcoin was up by 0.23% to $4,101.9. A pullback to an early morning low $4,082.3 saw Bitcoin hold above the first major support level at $4,066.27 before finding support.
Bitcoin recovered to strike an early morning high $4,125.0 before easing back. The early rally saw Bitcoin break through the first major resistance level at $4,116.67.
In spite of the pullback from the morning high, recovering to hold on to $4,100 levels was positive.
For the day ahead
A hold above $4,090 levels through the morning would support a bullish second half of the day. A move through the first major resistance level at $4,116.67 could bring the second major resistance level at $4,140.73 into play. Support from the broader market would be needed, however, for Bitcoin to breakout from current levels.
Failure to hold above $4,090 levels could see Bitcoin test the first major support level at $4,066.2 before any recovery. Barring a major crypto meltdown, we would expect Bitcoin to steer clear of sub-$4,050 levels on the day.
In the event of a sell-off, the second major support level at $4,039.93 would likely limit the downside on the day.