Yahoo Finance Bitcoin – Back in the Red and at Sub-$3,000 by the Weekend
Bitcoin slid by 5.13% on Thursday, reversing Wednesday’s 2.92% gain, to end the day at $3,354.3, the downward trend on daily highs resuming following Wednesday’s respite.
Thursday’s fall was the 3rd of the week, any hopes of a Bitcoin rebound from the previous week and November’s losses dashed by the start of the week tumble.
It wasn’t just the Bitcoin bulls that were under the hammer, with the broader market in reverse, the only positive for Bitcoin being a hold above last week’s swing low $3,277.6, the bulls doing their best to avoid sub-$3,200 levels that would almost assure a slide through to sub-$3,000 levels.
Looking across at the broader market, the total market cap inched back down to $104.63bn, ever closer to the $100bn mark that could signal dire straits for the majors.
There was no news to hit the majors through the late afternoon, the broad based sell-off likely to have come off the back of a lack of momentum through the earlier part of the day, investors cautious of another meltdown.
For the current week, Bitcoin is down 7.9% and, while Wednesday may suggest that there’s enough support to steer Bitcoin clear of sub-$3,000 levels, support doesn’t last for ever.
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At the time of writing, Bitcoin was down 0.33% to $3,343.3, with moves through the early morning seeing Bitcoin fall to a morning low $3,296.3 before recovering to a morning high $3,395.2.
With the day’s major support and resistance levels left untested early on in the day, a recovery from sub-$3,300 levels will have provided some comfort to the Bitcoin bulls and the broader market that could see early losses reverse through the middle of the day.
The odd swing in favour of the bulls is all that can be expected for now however, a general lack of news in favor of the longs providing little incentive for side lined investors to jump back in at current price levels, the negative bias still intact.
Of interest through the week has been Bitcoin’s dominance levels, with Bitcoin’s dominance sitting at under 55% in spite of the broad based cryptomarket sell-off through the week. The lack of appetite for Bitcoin during the sell-offs, leading to a pullback in dominance, certainly gives another bearish signal for the Bitcoin bulls and the broader market near-term.
For the day ahead, a move back through the morning high $3,395.2 to $3,400 levels would signal a 2nd rally of the week, which would bring the first major resistance level at $3,495.27 and $3,500 levels into play before any pullback, $3,600 levels unlikely to be touched in the day ahead
Failure to move back through the morning high to $3,400 levels could see Bitcoin take another tumble later in the day, with a pullback through the morning low $3,296.3 bringing the day’s first major support level at $3,265.17 into play, with a slide through last week’s swing lo $3,277.6 likely to add to further pressure on Bitcoin and the cryptomarket.
This article was originally posted on FX Empire
