Bitcoin Ends a Bearish Month on a High as the Majors Hit Reverse Today

Bitcoin rallied by 5.2% on Wednesday. Following on from a 0.9% gain on Tuesday, Bitcoin ended the day at $10,088.

A particularly bullish first half of the day saw Bitcoin rally from an early intraday low $9,575.5 to an intraday high $10,120.

Steering clear of the major support levels, Bitcoin broke through the first major resistance level at $9,764.53 and second major resistance level at $9,940.07.

Of greater significance on the day was a breakthrough the 38.2% FIB of $9,734.

Relatively range-bound through the latter part of the day, Bitcoin eased back to $9,900 levels before closing out the day at $10,088.

It was Bitcoin’s first close out at $10,000 levels since 22nd July.

In spite of the end of the month rally, Bitcoin ended July with a 6.59% loss.

Despite the bearish month, the extended bullish trend remained intact. Bitcoin will need to continue to avoid a material pullback from the 38.2% FIB of $9,734 to maintain the extended bullish trend.

Elsewhere

Across the top 10 cryptos, it was a Bullish end to the month for the majors.

Litecoin led the way on the day, rallying by 9.48%. EOS and Ethereum also saw solid gains on the day, rising by 5.33% and 4.24% respectively.

Binance Coin (+2.78%), Bitcoin Cash ABC (+2.04%) and Tron’s TRX (+1.36%) also found support at the month-end.

Bucking the trend on the day were Stellar’s Lumen and Bitcoin Cash SV. While Bitcoin Cash SV ended the day flat, Stellar’s Lumen fell by 0.14%.

There was no trend-bucking in the month of July, however, with all of the top 10 cryptos hitting reverse.

Tron’s TRX (-29.56%), Ethereum (-23.34%), Bitcoin Cash SV (-23.39%) and EOS (-23.34%) saw the heaviest losses in July.

Things were not much better for Stellar’s Lumen (-19.34%), Litecoin (-18.96%), Ripple’s XRP (-18.85%), and Bitcoin Cash ABC (-17.1%).

Binance Coin fared better than the pack with a 12.86% loss for the month.

Over the month, news of Facebook’s Libra coin plans added pressure to the majors. Notable in the month was Litecoin’s sell-off, which came in spite of this month’s halving event.

This Morning

At the time of writing, Bitcoin was down by 1.01% to $9,985.9. A mixed start to the day saw Bitcoin rise to an early morning high $10,167.

Falling short of the first major resistance level at $10,280.17, Bitcoin fell back to a mid-morning low $9,875.0.

Bitcoin managed to hold above the first major support level at $9,735.67 and 38.2% FIB of $9.734 in the early pullback.

Elsewhere, Binance Coin bucked the trend through the morning, up by 1.55% at the time of writing. It was red for the rest of the crypto majors, with EOS leading the way down with a 3.61% loss.

Bitcoin Cash SV (-2.96), Bitcoin Cash ABC (-2.98) and Ethereum (-2.54%) weren’t far behind.

BTC/USD 01/08/19 Daily Chart

For the day ahead

Bitcoin would need to move back through to $10,000 levels to support a rebound later in the day. A move back through the morning high $10,167 would bring the first major resistance level at $10,280.17 into play.

Bitcoin would need the support of the broader market, however, to break back through to $10,100 levels.

Barring a broad-based crypto rebound, Bitcoin would likely come up short of Wednesday’s high $10,120.

Failure to move back through to $10,000 levels could see Bitcoin take a bigger hit on the day. A pullback through the morning low $9,875.0 would bring the 38.2% FIB of $9,734 and the first major support level at $9,735.67 into play.

In the event of an extended sell-off through the day, Bitcoin would likely test the second major support level at $9,383.33 before any recovery.

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