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Bitcoin – Bulls Need Another Win to Calm the Nerves

Bob Mason
Updated

Bitcoin gained 1.33% on Saturday, reversing Friday’s 2.01% loss, to end the day at $3,506.0. The gain has reduced the week’s loss to 13.19% for the current week, Monday through Saturday.

A relatively bullish start to the day saw Bitcoin rise to an early morning high $3,549.7 before hitting reverse, with a broad based cryptomarket sell-off weighing through much of the day.

Bitcoin fell to a late in the day intraday low $3,316.1, steering clear of the first major support level at $3,281.73 before breaking out late in the day to an intraday high $3,800.1.

The late in the day spike looked like nothing more than a short squeeze, with short covering likely to have kicked in following particularly heavy losses in November and early November

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The day’s high saw Bitcoin break through the first major resistance level at $3,634.13 to come within range of the second major resistance level at $3,808.27 before sliding back to $3,500 levels.

For the Bitcoin bulls, it was another day on which Bitcoin managed to avoid pulling back to sub-$3,000 levels, with the cryptomarket total market cap recovering to $111.01bn, a combination of Bitcoin at sub-$3,000 and the total market cap at sub-$100bn a likely doomsday event for the market.

Elsewhere, it was another dark day for the Bitcoin Cash due, with Bitcoin Cash ABC and Bitcoin Cash SV seeing heavy losses relative to the broader market, while Ripple’s XRP manage to bounce late in the day, holding onto the coveted number 2 spot in the rankings by market cap.

From the top 20, Binance Coin was the trailblazer, with a 4.57% gain over the last 24-hours.

On the news front, there was nothing of particular significance to drive Bitcoin and the broader market. With the SEC now having bought an extra 2-months, the next major bit of news will be the findings of the U.S DoJ investigation into last year’s Bitcoin rally.

While the DoJ may look to bring those involved in any manipulation to justice, the greater significance will likely be the influence on the SEC’s delayed decision on the Bitcoin ETFs, a manipulation of such magnitude likely to bring to an end an extended approval process that started back in the summer.

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At the time of writing, Bitcoin was up 0.04% to $3,507.3 in what’s been a slow start to the morning following Saturday’s late in the day spike.

Rising from a morning low $3,496 to a high $3,521.2 before easing back, the day’s major support and resistance levels were left untested.

For the day ahead, holding onto $3,500 levels through the morning would support a move through to $3,600 levels to bring $3,700 levels and the first major resistance level at $3,765.37 into play before any pullback. We can expect some profit taking to limit any major breakout however, with the Bitcoin bears still eyeing sub-$3,000 levels.

Failure to move hold onto $3,500 levels could see Bitcoin slide through to $3,300 levels to bring the first major support level at $3,281.37 into play, with a return to $3,200 levels likely to get investors a little jittery going into Monday.

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This article was originally posted on FX Empire

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