The Crypto Bears Come Out of Hibernation

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.

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This Morning,

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.

BTC/USD 11/04/19 Daily Chart

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.

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