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Bitcoin – The Bulls Need to Deliver after Talking Up a Rebound

Bob Mason

Bitcoin slipped by 0.47% on Sunday. Partially reversing a 2.12% rise from Saturday, Bitcoin ended the day at $4,068.9.

A bearish start to the day saw Bitcoin fall from an intraday high $4,088.1 to an early morning intraday low $4,041.1.

Steering clear of the first major support level at $4,005.13, Bitcoin moved back through to $4,080 levels before a late pullback.

While Bitcoin failed to break back through to $4,100 levels on the day, avoiding sub-$4,000 was key.

The bulls will continue to look for $4,200, with $4,500 still the line in the sand for the bulls and the bears.

Elsewhere

Across the top 10 cryptos, Stellar’s Lumen bucked the trend on the day, with a 1.12% gain. The upside on the day saw Stellar’s Lumen catch up to Binance to see amongst the largest weekly gains.

Bitcoin Cash ABC was the story of the week, however, rallying by 17.5%, in spite of a pullback on Sunday. Binance and Stellar’s Lumen gained 8.7% and 8% respectively.

None of the majors saw red for the week, though Tron’s TRX wasn’t far off, up by just 0.17%.

There was no materially negative news on the day to pull the broader market into the red. For Bitcoin, the ranges seen since the November sell-off from $6,000 levels is unlikely to shift until there’s a news-driven move.

Through 2017 and much of 2018 the markets bounced around on regulator action and reaction to the crypto market. In stark contrast, it’s been unnervingly quiet through the first quarter of this year.

The only major news the market continues to hold out for is the SEC’s decision on the Bitcoin ETFs. Having previously been declined, there is hope of a step forward. The good news is that Fidelity has now begun to deliver custody services for institutional crypto investors.

The lack of a custody services framework had been one of the SEC’s main concerns. The other good news is that there’s been very little talk of price manipulation or theft for that matter.

If Bitcoin can hover at sub-$4,500 levels and the SEC approves a number of the 9 Bitcoin ETFs under review, there may be hope of some inflows from institutional investors.

Whether institutional investors will jump in ahead of the planned rollout of rules and regulations this summer remains to be seen, however.

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At the time of writing, Bitcoin was up by 0.5% to $4,089.2. A bullish start to the day saw Bitcoin rally from a morning low $4,067.5 to a high $4,120 before easing back. Bitcoin broke through the first major resistance level at $4,090.97 and second major resistance level at $4,113.03 before the pullback.

While the day’s major support levels were left untested early on, $4,100 continued to pin Bitcoin back from a breakout.

For the day ahead

A hold above $4,066 levels through the morning would support another run at $4,100 levels later in the day. A break back through the first major resistance level at $4,090.97 would bring the second major resistance level at $4,113.03 back into play. We would expect Bitcoin to come up short of the third major resistance level at $4,160.03, however.

Failure to hold above $4,066 levels could see Bitcoin fall through the first major support level at $4,043.97. Barring a broad-based crypto sell-off, we would expect sub-$4,000 support levels to be avoided. The second major support level at $4,019.03 would limit the downside in the event of a reversal.

This article was originally posted on FX Empire

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