After a bad week for the cryptos last week, the start of this week didn’t quite go according to plan for the bulls.
Following Sunday’s gains, hopes of any breakout were dashed on Monday, with the cryptomarket hitting reverse.
On the day, Bitcoin fell by 2.92%. Reversing a 1.77% gain from Sunday, Bitcoin ended the day at $5,042.8.
A bullish start to the day saw Bitcoin strike a mid-morning intraday high $5,218.6 before hitting reverse.
Falling short of the first major resistance level at $5,252.6, Bitcoin tumbled to a late intraday low $4,977. The reversal saw Bitcoin fall through the first major support level at $5,095.5 and second major support level at $4,996.6 before recovering.
Sub-$5,000 support levels came to the rescue once more to limit the day’s losses. The other crypto majors struggled with Bitcoin’s visit to sub-$5,000 levels on the day, however.
Across the top 10 cryptos, it was a sea of red at the start of the week. Leading the way down was Litecoin, which tumbled by 6.6% on the day. Close behind were Ethereum and Stellar’s Lumen, which fell by 4.8% and 4.39% respectively.
While Binance saw modest losses, down by just 1.43%, Bitcoin Cash ABC bucked the trend on the day.
Bitcoin Cash ABC rallied by 8.8% on Monday. While bucking the trend, of note was Bitcoin Cash SV’s 17.6% slide on the day. The downward trend has seen Bitcoin Cash SV fall to number 13 by market cap. Quite a contrast to Bitcoin Cash ABC’s number 7 ranking.
The slide in Bitcoin Cash SV came off the back of news of Binance announcing the delisting of the cryptocurrency. Loyalty is hard to find and Craig Wright learned the hard way on Monday. News of the delisting led investors to flee Bitcoin Cash SV in favor of Bitcoin Cash ABC.
Following last year’s Bitcoin Cash hard fork, it has been left to the exchanges to decide the fate of the respective coins. Bitcoin Cash ABC looks to be the winner, particularly if other exchanges follow suit…
At the time of writing, Bitcoin was up by 0.47% to $5,066.5. A relatively range-bound start to the day saw Bitcoin rise from a morning low $5,029.6 to a high $5,067. The moves through the early morning left the day’s major support and resistance levels untested.
Elsewhere, it was a mixed start to the day. Leading the charge early was Bitcoin Cash ABC, which was up by 2.98% at the time of writing. In spite of the delisting news, Bitcoin Cash SV managed to eke out a 0.94% gain early, though it remains to be seen whether it can hold on through the day.
In the red through the early hours were Ripple’s XRP, Stellar’s Lumen, and Binance. With minor losses, however, Bitcoin will likely dictate direction through the morning.
For the day ahead,
Bitcoin’s struggles at $5,000 will continue to test investor resilience. A move through to $5,080 levels would bring $5,100 levels and the first major resistance level at $5,181.93 into play.
Barring support from the broader market, Bitcoin will likely come up short of $5,200 levels on the day. Bitcoin Cash ABC could improve the mood…
For the bulls and the broader market, a run at the 38.2% FIB of $5,809 will need to come soon in order to avoid a reversal. In spite of pullbacks to sub-$5,000 levels, Bitcoin has managed to avoid the 23.6% FIB of $4,816. A fall to sub-$4,900 levels would be the sell-signal for those that jumped in back in late December.
While in positive territory early on, failure to move through to $5,080 levels could see Bitcoin test sub-$5,000 support levels. A fall through the morning low $5,029.6 would bring the first major support level at $4,940.33 into play.
Barring a crypto meltdown, Bitcoin will likely continue to avoid sub-$4,900 levels, for now at least…
This article was originally posted on FX Empire
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