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Bitcoin Tech Analysis – Recap and Mid-Morning Review – 05/09/19

Bharat Gohri

Bitcoin saw its first September day in the red on Wednesday, falling by 0.48%. Partially reversing a 2.93% gain from Tuesday, Bitcoin ended the day at $10,590.

Through the first half of the day, Bitcoin fell from an early morning high $10,669 to an early afternoon intraday low $10,410.

Steering well clear of the first major support level at $10,366, Bitcoin rallied to a late intraday high $10,849.

Finding the support of the broader market, Bitcoin came up against the first major resistance level at $10,841 ahead of a late pullback.

The late pullback saw Bitcoin fall back through the first major resistance level and into the red for the day.

In spite of the minor loss on the day, a bullish start to the month left Bitcoin up by 10.11% to the end of Wednesday. Outgunning the rest of the pack, Bitcoin’s dominance rose to 70.8%.

The extended bullish trend, formed on 15th December’s swing lo $3,215.2, remained firmly intact. September’s break through the 38.2% FIB of $9,734 and continued to hold well above the 60.2% FIB of $7,245 reaffirmed the bullish trend.

This Morning

At the time of writing, Bitcoin was down by 0.25% to $10,563. A mixed start to the day saw Bitcoin slide to an early morning low $10,517 before finding support.

Steering well clear of the first major support level at $10,383.67, Bitcoin struck a mid-morning high $10,647 before falling back into the red.

Bitcoin fell well short of the first major resistance level at $10,822.67 in the early part of the day.

For the Day Ahead

A move back through to $10,620 levels would support another run at the first major resistance level at $10,822.67.

Bitcoin would need the support of the broader market, however, to break out from $10,600 levels.

Barring a broad-based crypto rebound, Bitcoin would likely continue to fall short of the major resistance levels and Wednesday’s high $10,849.

Failure to move back through to $10,620 levels could see Bitcoin slide back into the deep red.

A fall through the morning low $10,517 to $10,470 levels would bring the first major support level at $10,383.67 into play.

Barring a crypto meltdown, however, we would expect Bitcoin to steer clear of the second major support level at $10,177.33.

For the Bitcoin bulls and the broader market, a hold onto $10,500 levels is key through the morning.

Looking at the Technical Indicators

Major Support Level: $10,383.67

Major Resistance Level: $10,822.67

23.6% FIB Retracement Level: $11,275

38.2% FIB Retracement Level: $9,734

62% FIB Retracement Level: $7,245

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The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets

This article was originally posted on FX Empire

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