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Bitcoin – Can the Bulls Make it 3 in a Row?

Bob Mason
Updated

Bitcoin gained 3.89% on Sunday, following on from a 1.33% rise on Saturday, to end the day at $3,642.3.

There was some respite for the Bitcoin bulls, with the weekend gains leaving Bitcoin down just 9.81% for the week, Monday through Sunday and, more importantly, see Bitcoin avoid sub-$3,000 levels that would certainly have shaken up cryptocurrency investors across all the majors.

It wasn’t plane sailing through the day, with a range bound morning seeing Bitcoin ease back to a late morning intraday low $3,465.4 before finding support. Steering clear of the day’s first major support level at $3,281.37, Bitcoin rallied to a late afternoon intraday high $3,789, coming up against the first major resistance level at $3,765.37 to ease back to $3,600 levels by the day’s end.

Sunday’s gains, which were also seen across the broader market, came in spite of a lack of a news event, with price action and some bullish talk drawing in side lined investors on the hope that Bitcoin’s hold onto $3,000 levels earlier in the week was the final bearish test before a rebound.

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With Bitcoin’s dominance sitting at 55.1%, following lighter losses from the previous week, relative to the broader market, a fall back to sub-54% levels would be needed to signal a 2nd half of the month rebound, though with the rest of the majors struggling, Bitcoin may well need to be the barometer for the broader market near-term.

A steadying in Bitcoin and the start of an upward trend would be needed to restore some confidence in the cryptomarket though there is still the one elephant in the room that being the ongoing U.S DoJ department’s investigation into last year’s Bitcoin rally.

The good news is that investors can put aside concerns over the SEC decision on the Bitcoin ETF applications until February and, while many will have banked on a Bitcoin ETF to provide the necessary support to a Bitcoin and cryptomarket rebound, Bitcoin did make it to just shy of $20,000 without the help of the ETFs almost a year ago.

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At the time of writing, Bitcoin was up just 0.01% to $3,642.6, with moves through the early part of the morning seeing Bitcoin rise to an early morning low $3,709.7 before easing to a morning low $3,611.

While the morning’s moves left the major support and resistance levels untested, key through the morning will be for Bitcoin to hold onto $3,600 levels and more importantly avoid a pullback to the morning low $3,611.

Bearish sentiment across the broader market could see investors hit the sell-button to hold onto the weekend’s gains, fear of another meltdown every present for those dipping their toes back into Bitcoin and the cryptomarket in general.

For the Bitcoin bears, a pullback to sub-$3,600 levels to bring the first major support level at $3,475.47 into play would be needed to raise the prospects of a pullback through Friday’s new swing lo $3,277.6 to bring sub-$3,000 levels into play in the week ahead.

The cryptomarket is not out of the woods just yet…

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This article was originally posted on FX Empire

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