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The Crypto Daily – Movers and Shakers -08/05/20

By:
Bob Mason
Published: May 8, 2020, 02:53 UTC

Bitcoin revisits $10,000 early, with another breakout on the cards should Bitcoin break through the 62% FIB early on.

Depositphotos_193678068_s-2019

Bitcoin rallied by 9.06% on Thursday. Following on from a 1.47% gain on Wednesday, Bitcoin ended the day at $9,979.6.

A mixed start to the day saw Bitcoin fall to an early morning intraday low $9,029.0 before making a move.

Steering clear of the first major support level at $8,904.73, Bitcoin rallied to a final hour intraday high $10,045.0.

Bitcoin broke through the first major resistance level at $9,409.13 and the second major resistance level at $9,666.77.

More significantly, Bitcoin tested resistance at the 62% FIB of $10,034 before easing back to sub-$10,000.

The near-term bearish trend, formed at late June 2019’s swing hi $13,764.0, remained firmly intact, reaffirmed by the March swing lo $4,000.

For the bulls, Bitcoin would need to break out from $10,000 levels to form a near-term bullish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day for the pack on Thursday.

Monero’s XMR led the way, rallying by 12.33%.

Bitcoin Cash ABC (+5.59%), Cardano’s ADA (+4.69%), EOS (+4.14%), Ethereum (+6.72%), Litecoin (+5.37%), and Stellar’s Lumen (+4.09%) also found strong support.

Binance Coin (+3.84%), Bitcoin Cash SV (+2.71%), Ripple’s XRP (+3.23%), Tezos (+2.39%), and Tron’s TRX (+3.83%) trailed the front runners.

Through the current week, the crypto total market cap rose from a Monday low $240.56bn to a Thursday high $270.61bn. At the time of writing, the total market cap stood at $269.25bn.

Bitcoin’s dominance held onto 65% levels following Monday’s modest loss, before the mid-week breakout that delivered 68% levels. At the time of writing, Bitcoin’s dominance stood at 67.8%.

24-hour trading volumes fell to a Tuesday current week low $145.07bn before jumping to a Thursday high $195.08bn. At the time of writing, 24-hr volumes stood at $194.91bn.

This Morning

At the time of writing, Bitcoin was down by 0.67% to $9,912.4. A mixed start to the day saw Bitcoin fall to an early morning low $9,857.1 before striking a high $10,025.0.

Bitcoin left the major support and resistance levels and the 62% FIB untested early on.

Elsewhere, it was another bullish start to the day for the rest of the majors.

Cardano’s ADA led the way, rallying by 2.41%, with Bitcoin Cash SV up by 1.93%.

BTC/USD 08/05/20 Daily Chart

For the Bitcoin Day Ahead

Bitcoin would need to move back through to $10,000 levels to bring the first major resistance level at $10,340.07 into play.

Support from the broader market would be needed, however, for Bitcoin to break out from the 62% FIB of $10,034.

Barring a broad-based crypto rally, the 62% FIB would likely leave Bitcoin short of the first major resistance level.

In the event of another breakout, $10,500 levels could come into play before any pullback.

Failure to move through to $10,200 levels could see Bitcoin fall deeper into the red.

A fall through back through to sub-$9,685 levels would bring the first major support level at $89,324.07 into play before any recovery.

Barring a crypto meltdown, however, Bitcoin should steer clear of sub-$9,700 levels.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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