It was another positive day across the broader market, with the majors recovering from a mixed start to the day to close out a 2nd consecutive day in the green and, for the vast majority of the front runners, move into positive territory for the first week of the year.
Bitcoin gained 2.17% on Wednesday, following on from a 3.4% rise on Tuesday, to end the day at $4,048.8.
On the day, a relatively range bound morning saw Bitcoin ease back to a mid-morning intraday low $3,917.9 before finding support from an afternoon broad based crypto rebound, the day’s low steering clear of the first major support level at $3,838.47.
The afternoon rally saw Bitcoin move back through to $4,000 levels for the 1st time this year, Bitcoin breaking through the first major resistance level at $4,037.37 to strike a late in the day intraday high $4,083.5 before easing back.
While the day’s gain may not have been a spectacular one, a return to $4,000 levels on the day was significant, providing support to the broader market, leading to Bitcoin’s dominance falling to 50.9%, its first visit to 50% levels since 24th December.
With Bitcoin’s dominance on the slide, the total crypto market cap has crept up to $134.42bn, the bulls yet again managing to avoid a sub-$100bn test, with Bitcoin avoiding sub-$3,000 levels for now.
Across the broader market, Ethereum looked to cement its return to the number 2 spot by market, cap, rallying by more than 10% on the day, with EOS and Monero’s XMR also seeing notable gains amongst the top 20 on a day when the crypto bears failed to make their mark following the 1st day of the year’s slide.
With the Bitcoin and the broader market moving into positive territory, the story of the week would have to be Ethereum’s revival. Since 14th December’s swing lo $80.6, Ethereum has surged by more than 90% in just over 2-weeks and, while the ICO market remains a ghost town, the Token Taxonomy Act of 2018 could get the much needed support to give the ICO market and Ethereum a boost through the year, Ethereum still likely to find its place in spite of growing competition from altcoins including the likes of EOS and NEO.
At the time of writing, Bitcoin was down 0.69% to $4,021.0, with moves through the early morning seeing Bitcoin fall from a morning high $4,056.6 to a morning low $3,999.1 before recovering to $4,000 levels, the day’s major support and resistance levels left untested early on.
For the day ahead, a hold onto $4,000 levels through the morning would support a move through the morning high $4,056.6 to bring $4,100 level and the first major resistance level at $4,115.57 into play before any pullback, the second major resistance level at $4,182.83 unlikely to be in play later in the day.
Failure to hold onto $4,000 levels could see Bitcoin take a bigger hit later in the day, with the first major support level at $3,949.97 in play through the day and sentiment across the broader market to dictate whether Bitcoin will touch sub-$3,900 levels before any recovery, the second major support level at $3,851.13 there to prevent any heavier losses in the event of a sell-off.
This article was originally posted on FX Empire
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