Bitcoin was amongst the majority of the cryptos that saw green mid-week. Reversing a 1.81% fall from Tuesday, Bitcoin gained 1.78% on Wednesday to end the day at $5,310.1.
Tracking the broader market through the day, Bitcoin rose to a late afternoon intraday high $5,488 before hitting reverse.
Bitcoin broke through the first major resistance level at $5,295.80 and second major resistance level at $5,375.3.
On the reverse, Bitcoin fell back through the major resistance levels to an intraday low $5,193.5. In spite of the reversal, Bitcoin held above the first major support level at $5,153.4, to move back through to $5,300 levels.
Across the top 10 cryptos, it was a mixed day for the majors. Cardano’s ADA led the way, rallying by 6.59%, with EOS not far behind, rising by 4.52%. Trailing the majors were Binance Coin and Ripple’s XRP. Binance Coin slid by 1.46%, while Ripple’s XRP managed to gain just 0.39%.
The moves came off the back of a bearish start to the week that partially reversed last week’s broad-based gains.
Wednesday’s broad-based rally led to the total market cap to a high $186.22bn before falling back. In spite of the increased volatility, cryptomarket volumes have eased back from $80bn levels to $50bn levels. The upward momentum across the broader market has seen more investors buy and hold, though this could change should the bears regain control.
At the time of writing, Bitcoin was down 1.77% to $5,216.1. A bearish start to the day saw Bitcoin slide from a morning high $5,342.1 to a low $4,952.4 before finding support.
The reversal saw Bitcoin fall through the first major support level at $5,173.07 and second major support level at $5,036.03.
It was Bitcoin’s first visit to sub-$5,000 levels since 1st April. Of greater significance was sub-$5,000 support that drove Bitcoin back to $5,200 levels in the early hours.
Elsewhere, it was a sea of red across the crypto top 10. Bitcoin Cash ABC saw the biggest loss of the morning, down by 6.14% to $285 levels. Stellar’s Lumen and Ripple’s XRP were also deep in the red, down by 5.84% and 4.25% respectively.
Following Wednesday’s trend-bucking loss, Binance was the best performer of the morning, down by 2.83%.
The broad-based sell-off led the total market cap back down to $177.86bn at the time of writing. Bitcoin’s dominance moved through to $51.8%, reflecting the shift in sentiment in the early hours.
For the day ahead
Bitcoin will need to hold onto $5,200 levels through the morning to support a partial recovery of the morning losses. A move back through to $5,330 levels would be needed, however, for Bitcoin to take a run the first major resistance level at $5,467.57. Barring a broad-based crypto rebound, we would expect Bitcoin to come up short of $5,400 levels in the event of an afternoon recovery.
Failure to hold onto $5,200 levels could see Bitcoin slide back through the first major support level at $5,173. A pullback could see Bitcoin test sub-$5,000 support for a 2nd time before any recovery. Avoiding a return to sub-$5,100 levels this morning would be needed for the sell-off not to gather momentum.