Bitcoin – Can the Bulls Stop the Rot? It’s Looking Precarious…

Bitcoin and the broader market saw red once more on Tuesday, with Bitcoin’s bearish start to the week continuing, a 2.49% fall off the back of Monday’s 3.27% slide giving the Bitcoin bulls a lot of work to do mid-week.

Hopes of a rebound following 2 consecutive days of gains over the weekend have certainly evaporated and with it have hopes of another December rally that drove Bitcoin to its all-time high of just shy of $20,000 last year.

For now the Bitcoin bulls are doing their best to avert a pullback to sub-$3,000 levels, but with the increased volatility and downward bias, it looks more likely than a bounce back to $4,000 levels.

Investors are more likely to jump ship in a sell-off than to hold in anticipation of a bounce on the downside and on the upside, jitters over a possible sell-off are expected to limit any meaningful Bitcoin recovery.

The talk of bubbles may have come to an end, but with Bitcoin down a whopping 83.52% from last December’s peak $19,891 to last week’s 2018 low $3,277.6, that Bitcoin bubble has popped and the rest of the market has gone with it.

Going back to the dot.com era, there were plenty of victims, but there were also those that came out smelling of roses, forming some of the biggest corporations by market cap in the world today.

Writing off Bitcoin and the broader market in its nascency would be unwise, particularly if the 2017 rally was a missed opportunity and a taste of the future, but key to the current market is when to jump back in. It’s a murky world making it all the more difficult to find the bottom.

Some will be sitting it out on hopes of a Bitcoin slide back to sub-$3,000 levels, while others may be holding out until there is a partial recovery to $4,000 to signal the rumblings of a possible bull run. Either way, it makes current levels all the more challenging, which will add further volatility to a market that has come out of October’s eye of the storm.

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At the time of writing, Bitcoin was down just 0.01% to $3,434.9, in what’s been a mixed start to the day for the broader cryptomarket, with Bitcoin recovering from an early morning low $3,415 to steer clear of $3,300 levels and the first major support level at $3,360.9.

For the day ahead, a pullback through the morning low $3,415 to $3,300 levels could signal another sell-off to call on support at $3,000 to avoid a slide through to sub-$3,000 levels.

A move through a morning high 3,435.4 to $3,460 would be needed by the early afternoon to support a run at $3,500 levels and the first major resistance level at $3,530.6, with the bulls likely to be eyeing $3,600 levels and the day’s second major resistance level at $3,625.9.

With the total crypto market cap down to $108.35bn, the double whammy remains a distinct possibility, the crypto market down to sub-$100bn, with Bitcoin at sub-$3,000. Perhaps even the more bearish will then begin to consider the bottom to be close.

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This article was originally posted on FX Empire

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