Bitcoin declined by 1.36% on Saturday. Reversing a 0.44% gain from Friday with interest, Bitcoin ended the day at $10,228.
A bearish start to the day saw Bitcoin fall to an early morning low $10,237 before finding support. Steering clear of the first major support level at $9,908, Bitcoin recovered to a late morning intraday high $10,494.7.
Despite the morning rebound, Bitcoin came up short of the first major resistance level at $10,699.
A broad-based crypto sell-off ultimately weighed, however, with Bitcoin sliding to a late afternoon intraday low $10,004.
Bitcoin managed to steer clear of sub-$10,000 levels and the first major support level at $9,908 in the afternoon sell-off.
Support late in the day led to a move back through to $10,200 levels to limit the downside on the day.
For the Bitcoin bulls, the near-term bullish trend, formed at mid-December’s swing lo $3,215.2 remained intact. Bitcoin continued to find support at the 38.2% FIB of $9,734.
The downside on the day was the 6th in 9-days, however, leaving Bitcoin down by 11.64% for the current week. For the current month, Bitcoin was up by 1.39%. This week’s losses offset a particularly bullish start to the month that saw Bitcoin strike $12,000 levels.
On a rollercoaster of a day, Bitcoin’s market cap slid from a high $186.81bn levels to a day low $180.56bn. At the time of writing, Bitcoin’s market cap stood at $182.39bn, well below $205bn levels at the start of the week.
Bitcoin’s first hold onto $10,000 levels since Tuesday supported Bitcoin’s dominance, which continued to hold at 68% levels.
At the time of writing, Bitcoin up by 0.01% to $10,229. A bullish start to the day saw Bitcoin strike an early morning intraday high $10,280 before hitting reverse.
Falling short of the first major resistance level at $10,480.47, Bitcoin fell back to a morning low $10,086 before finding support.
Steering clear of the first major support level at $9,989.77, Bitcoin move back through to $10,200 levels to reverse the early losses.
For the Day Ahead
A move back through to $10,250 to $10,300 levels would bring the first major resistance level at $10,480.47 into play.
Bitcoin would need the continued support of the broader market, however, to break through to $10,300 levels.
In the event of a broad-based crypto rally, Bitcoin would likely visit $10,560 levels reached on Friday before any pullback.
Barring a crypto breakout, Bitcoin would likely come up short of the first major resistance level at $10,480.47 and Saturday’s high $10,494.7.
Failure to move back through to $10,250 levels would likely leave Bitcoin in the red on the day.
A slide back through the morning low $10,086 would see Bitcoin test the first major support level at $9,989.77.
Barring a crypto meltdown, Bitcoin should avoid sub-$9,800 levels and the 38.2% FIB of $9,734.
Looking at the Technical Indicators
Major Support Level: $9,989.77
Major Resistance Level: $10,480.47
23.6% FIB Retracement Level: $11,275
38.2% FIB Retracement Level: $9,734
62% FIB Retracement Level: $7,245
The article was written by Anthony Darvall, Chief Market Analyst at easyMarkets (www.easymarkets.com)
This article was originally posted on FX Empire
More From FXEMPIRE:
- E-mini S&P 500 Index (ES) Futures Technical Analysis – Closed on Strong Side of Main Retracement Zone at 2881.00 to 2845.75
- The Week Ahead: Monetary Policy, Stats and Geopolitics In Focus
- USD/JPY Forex Technical Analysis – Establishing Support at 106.013 Could Fuel Rally into 107.183
- U.S. Dollar Index Futures (DX) Technical Analysis – Needs Weaker Euro to Sustain Rally into 98.70
- Gold Price Futures (GC) Technical Analysis – Steep Drop Possible Under $1517.50
- Crude Oil Price Update – Rangebound – Strengthens Over $55.72, Weakens Under $53.95