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Bitcoin – A Move Looks Imminent, but the Bulls May not Like It

Bob Mason

Bitcoin fell by 2% on Thursday. Reversing a 0.55% gain from Wednesday, Bitcoin ended the day at $4,044.8.

A bullish start to the day saw Bitcoin rise to a mid-day intraday high $4,146.9 before hitting reverse.

Falling short of the first major resistance level at $4,151.57, Bitcoin slid to an early afternoon intraday low $4,004.0.

The sell-off saw Bitcoin fall through the first major support level at $4,087.77 and second major support level at $4,048.33. Support at $4,000 prevented heavier losses on the day as the broader market took a hit.

Elsewhere

Across the top 10 cryptos, it was a sea of red across the board. While the losses were on the heavier side, Binance led the way down with a 5.51% slide on the day.

The broad-based sell-off saw the total crypto market cap fall back below $140bn levels and as low as $137.76bn.

Negative sentiment across the market saw Bitcoin’s dominance rise back to 51% levels, as the crypto market reversed into the red for the week.

For the current week, Binance Coin also saw the heaviest losses, down by 8.47%. Tron’s TRX was a distant 2 nd with a loss of 4.39%, with the vast majority not far behind.

In spite of a 3% slide, Bitcoin Cash ABC fared the best in the current week, down 0.18%.

For the crypto bulls, crypto differentiation has failed to provide outliers as the broader market went back to pack tracking.

Ironically, once the market trailblazer, Ripple’s XRP has fallen into a rut in the last week. While managing to avoid sub-$0.30 levels, Ripple’s XRP has also failed to break out from $0.32 levels. The positive is that Ripple’s XRP has avoided heavier losses. With the team’s continued success and the lack of ICO activity, however, failing to recover it’s number 2 ranking a reflection of market dynamics than crypto differentiation.

Things could change once the SEC approves some or all of the Bitcoin ETFs, whether it’s in the weeks ahead or down the road.

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At the time of writing, Bitcoin was up by just 0.01% to $4,045.3. A particularly range-bound start to the day saw Bitcoin recover from morning low $4,041.8 to strike a high $4,052.9.

The tight ranges left the major support and resistance levels untested in the early hours.

For the day ahead

A move through to $4,065 levels would signal a move back through to $4,100 levels later in the day. Support from the broader market would be needed for Bitcoin to break through the first major resistance level at $4,126.47.

In the event of a broad-based crypto rally, Bitcoin could take a run at last week’s high $4,166.8, struck on Saturday. We would expect Bitcoin to continue to come up short of $4,200 levels, however.

Failure to move through to $4,065 could see Bitcoin fall back into the red. A fall through the morning low $4,041.8 could see Bitcoin fall to sub-$4,000 levels before any recovery. In the event of a sell-off, the first major support level at $3,983.57 would likely limit the downside on the day.

Barring a crypto sell-off, we would expect Bitcoin to continue to steer clear of sub-$4,000 levels.

This article was originally posted on FX Empire

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