Bitcoin fell by 1.49% on Wednesday. Partially reversing a 5.09% rally from Tuesday, Bitcoin ended the day at $8,036.8.
A bullish start to the day saw Bitcoin rally to an early morning intraday high $8,442.0 before hitting reverse.
Bitcoin broke through the 23.6% FIB of $8,200 and the first major resistance level at $8,328.97.
On the reverse, Bitcoin slid to a late intraday low $7,877.6 before finding support.
Steering clear of the first major support level at $7,860.57, Bitcoin recovered to $8,000 levels to limit the loss.
The near-term bearish trend, formed at late June’s swing hi $13,764.0, remained firmly intact, in spite of the current week’s gains.
For the bulls, Bitcoin would need to break out from $11,000 levels to form a near-term bullish trend.
The Rest of the Pack
Across the rest of the top 10 cryptos, it was a mixed day for the majors.
Bitcoin Cash SV (+0.04%) and Monero’s XMR (+1.47%) bucked the trend on the day.
It was bearish for the rest of the majors.
Binance Coin (+-3.39%), EOS (-2.72%), Litecoin (-2.33%), Ripple’s XRP (-2.88%), Stellar’s Lumen (-2.51%), and Tron’s TRX (-2.84%) also saw heavy losses.
Bitcoin Cash ABC (-1.03%) and Ethereum (-1.73%) saw more modest losses on the day.
Through the first half of the week, the crypto total market cap jumped from $197bn levels to an early Wednesday current week high $220.27bn before sliding back to $209bn levels. At the time of writing, the total market cap stood at $211.91bn.
Bitcoin’s dominance eased back to 68% levels off the back of Wednesday’s pullback. Trading volumes hit $100bn levels on Wednesday before easing back. At the time of writing, volumes were at $92bn levels.
On the News Front
Bitcoin’s visit to $8,000 levels appeared to be driven by strong demand for cryptos in response to Iran’s missile strikes on Wednesday morning.
While Bitcoin’s safe-haven status continues to be questioned, the threat of war appears to be a scenario where cryptos are favored by the markets.
Bitcoin and the likes of Litecoin joined gold and crude oil prices in a surge early on Wednesday before tensions eased.
At the time of writing, Bitcoin was down by 0.44% to $8,001.7. A bearish start to the day saw Bitcoin fall from an early morning high $8,036.8 to a low $7,925.0.
Bitcoin left the major support and resistance levels untested early on.
Elsewhere, it was a mixed start to the day.
Binance Coin (-0.27%) and Monero’s XMR (-2.47%) joined Bitcoin in the red early on.
It was a bullish start for the rest of the pack, however.
Bitcoin Cash SV (+1.00%) and Stellar’s Lumen (+1.18%) led the way early on.
For the Bitcoin Day Ahead
Bitcoin would need to move through to $8,120 levels to support a run at the first major resistance level at $8,360.0.
Support from the broader market would be needed, however, for Bitcoin to break out from the morning high $8,036.8.
Barring a broad-based crypto rally on the day, Bitcoin would likely come up short of $8,300 levels. Resistance at the 23.6% FIB of $8,200 would likely limit any upside.
In the event of a breakout, the first major resistance level would likely pin Bitcoin back on the day.
Failure to move through to $8,120 levels could see Bitcoin fall deeper into the red.
A fall back through the morning low $7,925.0 would bring the first major support level at $7,795.6 into play.
Barring a crypto meltdown, however, Bitcoin should steer clear of the second major support level at $7,554.4.