Bitcoin was amongst the crypto few that saw green at the start of the week. Following last week’s 25.7% rally, Bitcoin gained 1.4% on Monday to end the day at $5312.4.
Tracking the broader market through the morning, Bitcoin struck an intraday high $5,373.9 before hitting reverse. Bitcoin broke through the first major resistance level at $5,348.07 before sliding to a mid-day intraday low $5,138.6.
Steering clear of the first major support level at $5,101.47, Bitcoin bounced back in the 2nd half of the day. The recovery saw Bitcoin break back through to $5,300 levels and hold onto $5,000 levels for a 4th consecutive day.
Across the top 10 cryptos, it was a mixed day coming off the back of last week’s broad-based crypto rally.
Ethereum returned to winning ways on the day, rallying by 3.33% to lead the pack at the start of the week.
Joining Bitcoin and Ethereum was EOS, which managed a 1.68% rise on the day.
For the rest of the pack, it was deep red. Binance Coin saw the heaviest losses, sliding by 5.05%. The diverging moves between Ethereum and Binance Coin make sense when considering that the pair compete for fundraising projects.
For Bitcoin Cash ABC, Litecoin and Cardano’s ADA, profit taking would have contributed to the reversal on the day.
Bitcoin Cash ABC and Litecoin rallied by 91.7% and 52.3% in the week ending 7th April. Cardano’s ADA also found strong support, rallying by 28.2% to continue to hold a spot in the top 10. The week-long rally left Cardano’s ADA up 117% year-to-date.
On the news wires, reports of PayPal’s new fee structures will have given sidelined Bitcoin investors food for thought. While the cryptos are looking to do away with fees, PayPal has thrown in a structure that will be more punitive to those remitting smaller sums.
When viewing Litecoin and even Ripple’s XRP, the latest news appears to have had limited impact on the cryptomarket till now. But we can expect an influence should PayPal user numbers begin to dwindle and crypto adoption see a marked increase.
At the time of writing, Bitcoin was down by 0.56% to $5,282.8. Bearish through the first hour, Bitcoin fell from a morning high $5,312.4 to a low $5,273 before steadying.
The day’s major support and resistance levels were left untested early on.
Elsewhere across the top 10 cryptos, it was a sea of red. At the time of writing, EOS was leading the way down with a 1.81% fall. Binance Coin saw the most modest losses within the first hour, down by just 0.34%.
For the day ahead
A hold onto $5,270 levels through the morning would support a move back into positive territory later in the day. Following Monday’s gains, support from the broader market would be needed, however, for Bitcoin to take a run at Monday’s high $5,373.9. Barring a broad-based crypto rally, we would expect Bitcoin to come up short of the first major resistance level at $5,411.33.
Failure to hold onto $5,270 levels could see Bitcoin give up Monday’s gains. A pullback through to $5,220 levels would bring the first major support level at $5,176.03 into play. Barring a crypto meltdown, Bitcoin will likely avoid sub-$5,100 support levels on the day. In the event of a sell-off, the second major support level at $5,039.67 should prevent a slide to sub-$5,000 levels.
For the broader market, a slide back to $5,000 levels will likely weigh heavily.