The Crypto Daily – Movers and Shakers – 09/01/20

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.

This Morning

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.

BTC/USD 09/01/20 Daily Chart

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.

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