Yahoo Finance Bitcoin in the Red, But Looks Ready to Make a Move
Following last week’s tumble, Bitcoin managed to find its feet on Monday, gaining 7.68% to reverse most of the previous week’s 7.99% slide to end the day at $10,332.99.
The early part of the day had looked a little ominous for Bitcoin, which hit an intraday low $9,376.34.The bulls eventually took control midway through the day, driving Bitcoin to an intraday high $10,461.97, breaking through its first and second major resistance levels on a day that had already tested its first support level of $9,900.
The moves through the day were largely mirrored across the majors, though few managed to hold on to intraday gains by the close, as investors remained under pressure to lock in profits, with uncertainty in the cryptomarkets continuing to pin back the likes of Bitcoin.
The upside on Monday may be attributed to news of Coinbase and Bitfinex supporting Bitcoin Core’s SegWit upgrade, which is expected to lead to a sizeable fall in transaction fees, while also improving the speed of trading. Faster and cheaper transactions will certainly test the competition and with Bitcoin Core’s release coming in the wake of LitePay’s release on Monday.
We may even begin to see investors question the future of Bitcoin Cash, which resulted from a hard fork last summer, as developers and miners battled over fees and blockchain size that was seen as a Bitcoin limitation.
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At the time of writing, Bitcoin was down 0.41% to $10,281.99, recovering from an intraday low $10,150, as Bitcoin pulled back through its 23.6% FIB Retracement Level of $10,178.
There was plenty of support however, with Bitcoin moving back to $10,200 levels, though well short of an early intraday high $10,419.89.
Following Monday’s afternoon rally and this morning’s lateral move, investors may get comfortable with current levels, with Bitcoin having some room to move before hitting its first major resistance level of $10,738.
As always one of Bitcoin’s major nemesis remains the Cboe Bitcoin futures market. This morning, the March contract was down $60 to $10,270, which suggests that any immediate moves are likely to be on the smaller side, with the pair largely aligned by valuation.
For Bitcoin to break free of the Cboe futures shackles, a move through to today’s high $10,419.89 will be needed to then support a run at the first major support level of $10,738. There’s a long way to go, but Monday’s rally demonstrated how quickly sentiment can change during the day and, while Bitcoin continues to struggle, a move back through to $11,000 would certainly bring back some of the crypto money that walked.
It’s looking bullish at the time of writing, with strong support likely to see Bitcoin move back into positive territory through the day.
Across the rest of the cryptocurrency majors it was a mixed bag, with Litecoin, Ripple, Stellar Lumen and NEM’s XEM in the red, while Cardano, Bitcoin Cash and Ethereum bucked the trend, moving into positive territory through the morning.
Monday’s moves may have been impressive, but the market does need some momentum to push ahead and time is running out, with the next G20 Summit in a few weeks, where cryptocurrencies will be high on the agenda and volatility will likely spike as a result.
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This article was originally posted on FX Empire
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