Bitcoin fell by 1.41% on Tuesday. Partially reversing a 5.05% rally from Monday, Bitcoin ended the day at $7,905.5.
A bearish start to the day saw Bitcoin fall from an early morning intraday high $8,049 to a late afternoon intraday low $7,711.
Falling well short of the first major resistance level at $8,206.8, Bitcoin found support at the 23.6% FIB of $7,718. While calling on support at the 23.6% FIB, Bitcoin steered clear of the first major support level at $7,672.0.
Finding support through the late part of the day, Bitcoin recovered to $7,900 levels to limit the loss on the day.
The Rest of the Pack,
Across the rest of the top 10 cryptos, it was a sea of red for the majors, with the exception of Litecoin. Bitcoin Cash SV continued to leak, falling by 2.87%. EOS and Ripple’s XRP also saw relatively heavy losses, falling by 2.02% and 2.09% respectively.
Bucking the trend on the day was Litecoin, which rallied by 5.1% off the back of a 13% surge on Monday.
For Litecoin, this summer’s halving event continues to be the key driver. Year-to-date, Litecoin was up by 357% to the end of Tuesday. From the top 10 majors, only Binance Coin has done better, rallying by 406%.
The summer halving event has certainly drawn plenty of attention. The upward momentum since mid-December’s swing lo $22.17 is considered a dress rehearsal to Bitcoin’s halving event next year.
If a similar trend is seen in Bitcoin from the start of next year, however, Bitcoin would hit $35,000 levels. That is assuming that Bitcoin’s 1st January opening price is at around $8,000 levels.
If the bull run kicks off early, possibly in the wake of the Litecoin halving event, that would be quite a run. The reality is, however, that in stark contrast to Litecoin, Bitcoin is currently down by just 60% from its all-time high.
That leaves much less wiggle room for the Bitcoin bulls than that enjoyed by the Litecoin bulls. The Bitcoin bulls would be in search of a new all-time high, however. Few would scoff at a 152% rally to Bitcoin’s high $19,891.
At the start of the year, Litecoin was down by 929% from its all-time high $420 and current levels continue to fall well short of the all-time high, supporting the surge.
It’s not just down to the halving event, however. A shift in the regulatory landscape is expected in the coming months and the SEC will need to make a decision.
That should keep an early halving event-driven Bitcoin bull run in check for now…
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At the time of writing, Bitcoin was up by 0.61% to $7,954.1. A relatively bullish start to the day saw Bitcoin rally from a morning low $7,821 to a high $8,100 before sliding back.
The early rally saw Bitcoin break through the first major resistance level at $8,066.
Elsewhere, Ripple’s XRP reversed early gains to fall into the red, down 0.04% at the time of writing. EOS was also in the red, down by 0.19%, whilst the rest of the pack were in the green.
Leading the way through the early hours was Binance Coin, up by 5.08%, with Litecoin a distant 2nd, up by 3.3%.
For the Day Ahead,
Bitcoin would need to move back through to $8,000 levels to hold onto positive territory on the day.
A move back through to $8,000 levels would bring the first major resistance level at $8,066 back into play.
Barring another crypto break out, however, Bitcoin would likely come up short of the morning high $8,100.
Failure to move back through to $8,000 levels could see Bitcoin slide through first major support level at $7,728. The 23.6% FIB of $7,718 should limit the downside on the day.