The Crypto Daily – The Bears Take a Bite. It’s not for the Faint-hearted…It’s down but not out for the crypto bulls. While double-digit losses have eaten into the weekly gains, it’s going to be about the 2nd half of the day.
There was more shaking than moving across the cryptomarket going into the weekend.
For Bitcoin, following 8 days in the green out of the last 10, investors looked to lock in some sizeable gains.
Bitcoin fell by 3.35% on Thursday. Reversing a 2.32% gain from Wednesday, Bitcoin ended the day at $7,859.7.
A bullish start to the day saw Bitcoin rise to an intraday high and new swing hi $8,352.3 before hitting reverse.
Breaking through the first major resistance level at $8,286.23, Bitcoin slid to a late intraday low $7,700.1 before finding support.
The reversal saw Bitcoin slide through the first major support level at $7,909.73 and end the day back at sub-$8,000 levels.
The Rest of the Pack,
Across the rest of the top 10 cryptos, it was a mixed bag on Thursday.
Bucking the trend on the day were Ethereum and EOS, which gained 6.18% and 0.89% respectively.
For the rest of the pack, it was a day in the red with Ripple’s XRP, Litecoin and Cardano’s ADA seeing the heaviest losses on the day. Ripple’s XRP slid by 8.16%, while Litecoin and Cardano’s ADA fell by 6.36% and 6.04% respectively.
The speed of the rally raised questions over its sustainability, momentum rallies having previously led to sharp reversals.
Concentrated sell-orders were attributed to the sudden reversal that continued into this morning.
Momentum trading has been in full effect since Bitcoin woke from its deep sleep back at a current year low $3,405.3 struck in early February.
News of the sizeable sell-orders, reportedly in Asia, likely led to investors globally offloading to lock in gains made over the last few months.
The total market cap fell back to $251.72bn having topped out at $263.9bn earlier in the day on Thursday.
A warning signal on Thursday was a sudden rise and then slide in 24-hour trading volumes. With 24-trading volumes falling from $123.36bn, price support has been on the decline alongside, supporting the moves seen in the early hours of this morning.
At the time of writing, Bitcoin was down by 8.13% to $7,221.0. The early sell-off saw Bitcoin slide from a morning high $7,910 to a low $6,999.9 before steadying.
The reversal saw Bitcoin slide through the first major support level at $7.589.10 and second major support level at $7.318.5.
Falling well short of the major resistance levels, the reversal also saw Bitcoin slide through the 23.6% FIB of $7,140 before support kicked in.
Elsewhere, it was a bloodbath… as investors jumped for the sell-button in a bid to lock in some frothy gains.
Leading the slide were Stellar’s Lumen and Bitcoin Cash ABC, with losses of 10.91% and 10.21% respectively. Things were not much better for Ethereum, following Thursday’s trend-bucking gains. Ethereum was down by 9.5% at the time of writing.
EOS saw the most modest of losses in the early hours, down by a whopping 8.38%…
As for the total crypto market cap, it’s down to $229bn with the 24-hour trading volume down at $108.10bn…
For the Day Ahead,
It’ll be all eyes on Bitcoin. A pullback to sub-$7,000 levels and expect the sell-off to gather pace.
While the morning losses are heavy, it’s not all doom and gloom… For the current week, Bitcoin is still up 19.8%. That could halve if there is any move back towards the morning low.
Holding above the 23.6% FIB of $7,140 will be key. A fall through the $7,140 would not just be an alarm bell for Bitcoin…