The Crypto Bears Barely Make a Dent into the April Rally…It’s been a bad week for the majors, but it could have been far worse. Bitcoin’s recovery and hold onto $5,000 levels remains pivotal for the broader market.
After managing to buck the trend at the start of the week, Bitcoin rallied to a Wednesday intraweek high $5,488 before hitting reverse on Thursday.
A sell-off that continued into Friday saw Bitcoin slide to a week low $4,934.7 before finding support.
The moves through the week were significant, with Bitcoin managing to avoid another reversal to sub-$4,000 levels.
In spite of the Bitcoin ship steadying on Friday, there were more losses on Saturday, however. A 3rd day in the red left Bitcoin down 2.58% for the current week.
For the Bitcoin bulls, holding above the 23.6% FIB of $4,816 supported a bounce back to $5,000 levels.
Across the top 10 cryptos, it’s a sea of red for the current week. Leading the way down through to the end of Saturday was Litecoin, which slid by 15.2% Monday through Saturday.
A choppy week saw Litecoin fall back through the 38.2% FIB of $83 to sub-$80 levels. 5-days in the red for the current week failed to reverse the first week of the quarter’s rally, however.
Close behind Litecoin was Bitcoin Cash ABC. Some profit taking was unsurprising, following a 91% rally from the previous week. Having become just one of two of the top 10 to form a near-term bullish trend, Thursday’s broad-based sell-off saw Bitcoin Cash ABC slide through the 23.6% FIB of $291.
Amongst the best performers of the week, alongside Bitcoin, were Binance Coin and EOS. The pair were down by 1.93% and 2.57% by the end of Saturday. Minor when considering the double-digit losses seen across a number of the majors.
While the majors are set for a partial reversal of the previous week’s gains, Bitcoin’s recovery to $5,000 levels was key in the week.
As a result of the reversal and Bitcoin’s moderate losses, Bitcoin’s dominance crept up to 52%. The total cryptomarket cap fell back from $185bn levels from Monday to $172bn levels by the end of Saturday.
Of significance has also been the slide in 24-hour volumes. Having hit $80bn levels in the 1st week of the month rally, volumes have slid back to sub-$40bn levels.
Time will tell whether the necessary support will kick in should there be another broad-based crypto sell-off…
At the time of writing, Bitcoin was up by 0.28% to $5,118.1. Following Saturday’s pullback, it’s been a bullish start to the day. Bitcoin rose from a morning low $5,103.9 to a high $5,125.6 before steadying.
Whilst leaving the major support and resistance levels untested, a hold onto $5,100 levels was key early on.
Elsewhere, Bitcoin Cash ABC and Binance bucked the trend amongst the majors. The pair were down 0.36% and by 0.82% at the time of writing.
Leading the way was Ripple’s XRP, which managed to move back through to $0.33 levels and could be on for a bounce should the broader market avoid a pullback.
For the day ahead
It’s going to take one of those crypto rallies to take Bitcoin and the broader market into the green for the week.
A Bitcoin move back through to $5,200 levels would be the cue for the broader market. Bitcoin would need to break through the first major resistance level at $5,154.4, however, which could prove to be a challenge unless sentiment materially shifts in the early part of the day.
The bears will be looking to pull Bitcoin back to sub-$5,000 levels. A slide through the first major support level at $5,061.6 could be an alarm bell for the broader market.
There are no major news events or regulator decisions to support a continued upward trend, which could test investor resilience should Bitcoin continue to come up short of the 38.2% FIB of $5,809…