Following Friday's broad-based crypto sell-off, a Bitcoin move back through to $55,000 should settle the crypto market.
Bitcoin, BTC to USD, slid by 8.77% on Friday. Reversing a 3.25% gain from Thursday, Bitcoin ended the day at $53,839.
A mixed morning saw Bitcoin rise to an early morning intraday high $59,238 before hitting reverse.
Falling short of the first major resistance level at $59,937, Bitcoin slid to a mid-day intraday low $53,555.
The extended sell-off saw Bitcoin fall through the day’s major support levels and through the 23.6% FIB of $53,628.
Finding early afternoon support, however, Bitcoin revisited $54,800 levels before ending the day at $53,800 levels.
The partial recovery saw Bitcoin break back through the 23.6% FIB of $53,628 and the third major support level at $53,780.
The near-term bullish trend remained intact, in spite of the latest pullback to sub-$54,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $28,814 to form a near-term bearish trend.
Across the rest of the majors, it was a bearish day on Friday.
Litecoin led the way down, sliding by 12.26%.
Binance Coin (-8.00%), Bitcoin Cash SV (-9.00%), Cardano’s ADA (-8.41%), Chainlink (-9.20%), Crypto.com Coin (-10.63%), Ethereum (-10.68%), and Ripple’s XRP (-10.18%) also saw deep red.
Polkadot (-3.93%) saw relatively modest losses, however.
In the current week, the crypto total market rose to a Thursday high $2,685bn before sliding to a Friday low $2,334bn. At the time of writing, the total market cap stood at $2,420bn.
Bitcoin’s dominance fell to a Thursday low 41.75% before rising to a Friday high 43.32%. At the time of writing, Bitcoin’s dominance stood at 42.30%.
At the time of writing, Bitcoin was up by 0.73% to $54,231. A mixed start to the day saw Bitcoin fall to an early morning low $53,711 before rising to a high $54,479
Bitcoin left the major support and resistance levels untested early on.
Elsewhere, it was a mixed start to the day.
Bitcoin Cash SV (-0.73%) and Crypto.com Coin (-1.81%) bucked the early trend.
It was a bullish start for the rest of the majors, however.
At the time of writing, Litecoin was up by 1.62% to lead the way.
Bitcoin would need to move through the $55,544 pivot to bring the first major resistance level at $57,533 into play.
Support from the broader market would be needed for Bitcoin to break out from $55,000 levels.
Barring an extended crypto rally, the first major resistance level would likely cap the upside.
In the event of an extended rally, Bitcoin could test resistance at $60,000 levels before easing back. The second major resistance level sits at $61,227.
Failure to move through the $55,544 pivot would bring the 23.6% FIB of $53,628 and the first major support level at $51,850 into play.
Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$50,000 levels. The second major support level sits at $49,861.
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.