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Bitcoin – Dip Recovery Complete. Next Up, $4,100…

Bob Mason
Updated

Bitcoin rose by 0.57% on Tuesday. Partially reversing a 1.77% slide from Monday, Bitcoin ended the day at $3,992.7.

A relatively choppy day on Tuesday saw Bitcoin fall to a mid-morning intraday low $3,943.8 before recovering. Steering clear of the first major support level at $3,922.7, Bitcoin rallied to a late intraday high $3,996.

In spite of the recovery, Bitcoin came up short of $4,000 levels and the first major resistance level at $4,011.2.

For the Bitcoin bulls, it was the first time Bitcoin failed to touch $4,000 levels since 13th March.

Elsewhere

Across the top 10 cryptos, it was a mixed day. Leading the pack on the day were Stellar’s Lumen and EOS. The pair gained 2.77% and 2.76% respectively, with Ripple’s XRP a distant 3rd off the back of a 0.35% gain.

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The 2019 crypto trailblazers, Binance Coin, and Tron’s TRX saw the heaviest losses on the day. Binance slumped by 3.48%, while Tron fell by 2.68%.

In spite of the day’s losses, the year continued to deliver strong gains for both. Binance has seen 7 consecutive weeks in the green deliver a 158% return year-to-date.

For Tron, a pullback from a 2019 high $0.03585 in mid-January has cut the year-to-date gain to just 19%.

The reversal has seen Tron slide out of the top-10 cryptos by market cap, with Cardano’s ADA moving into the number 10 spot.

The news wires were relatively quiet through the day, supporting a late recovery across the broader market on Tuesday.

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At the time of writing, Bitcoin was up by 1.21% to $4,040.9. A bullish start to the day saw Bitcoin rally to a morning high $4,060 before easing back. The early rally saw Bitcoin break through the first major resistance level at $4,011.2 and second major resistance level at $4,029.7.

A start of a day morning low $3,979.3 saw Bitcoin hold above the first major support level at $3,959.

Following Bitcoin’s failure to hit $4,000 levels on Tuesday, a return to $4,000 levels in the early hours was key this morning.

For the day ahead

A hold above the second major resistance level at $4,029.7 through the morning would bring $4,100 levels into play. Support from the broader market would be needed, however, for Bitcoin to avoid a return to sub-$4,000. In the event of continued upward momentum through the day, the third major resistance level at $4,081.9 could be tested later in the day.

We would expect Bitcoin to come up sort of $4,100 levels, however.

Failure to hold above the second major support level could see Bitcoin ease back through the first major resistance level at $4,011.2. A broad-based crypto sell-off could see Bitcoin touch sub-$4,000 levels before any recovery.

Barring a broad-based sell-off, however, we would expect Bitcoin to hold onto $4,000 levels in the event of a pullback.

Steering clear of $3,978 levels will be key through the day.

This article was originally posted on FX Empire

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