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Bitcoin Technical Analysis – Support Levels in Play

Bharat Gohri

Bucking the trend from across the broader market, Bitcoin fell by 3.38% on Saturday. Partially reversing a 10.18% rally from Friday, Bitcoin ended the day at $11,920.

A particularly bearish start to the day on Saturday saw Bitcoin slide from an intraday high $12,338 to an early morning intraday low $11,354.

In spite of the early sell-off, Bitcoin steered clear of the first major support level at $11,285.67 and the 23.6% FIB of $11,275.

Finding support from the broader market, Bitcoin managed to recover to $12,200 levels before sliding back to sub-$12,000 levels.

For the current week, Bitcoin was up by 9.3%, which came off the back of 4 days in the green out of the last 6.

In what was a choppy week for the broader crypto market, Bitcoin was one of just 3 of the top 10 cryptos to be in positive territory for the current week.

As a result of the current week gains, Bitcoin’s dominance continued to hold at 62%.

Bitcoin’s bullish week saw the Bitcoin’s market cap rise from $190bn to a Thursday high $245.13bn before easing back. At the time of writing, the market cap stood at $210.82bn.

24-hour trading volumes were also on the up, rising from $20bn levels to hit $46bn levels on Thursday. At the time of writing, 24-hour trading volumes stood at $39.4bn.

For the Bitcoin bulls, the near-term bullish trend, formed at mid-December’s swing lo $3,215.2 remained intact. Bitcoin continued to hold above the 23.6% FIB of $11,275, with a 39.7% rally for the current month leading to a 211% gain year-to-date.

This Morning

At the time of writing, Bitcoin was down by 0.59% to $11,850.

A choppy morning saw Bitcoin rise to an early morning high $12,234 before hitting reverse.

Falling short of the first major resistance level at $12,390.33, Bitcoin fell to a mid-morning intraday low $11,681. In spite of the pullback, Bitcoin steered clear of the first major support level at $11,397.33 and the 23.6% FIB of $11,275.

For the Day Ahead

A move back through to $12,000 levels would support another run at the first major resistance level at $12,390.33.

Support from the broader market would be needed, however, for Bitcoin to break out from this morning’s high $12,234.0.

Barring a broad-based crypto rebound, Bitcoin would likely come up short of $12,300 levels on the day.

In the event of a 2nd half of a day bounce, a breakthrough the first major resistance level would bring $12,500 levels into play before any pullback.

Failure to move back through to $12,000 levels could see Bitcoin fall deeper into the red. A fall through the morning low $11,681 would bring the first major support level at $11,397.33 into play.

Barring an extended broad-based crypto sell-off, Bitcoin should steer clear of the 23.6% FIB of $11,275 on the day.

The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets

This article was originally posted on FX Empire

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