After a bearish start to the week, the majors find early support. A Bitcoin move through to $8,200 should provide further support.
Bitcoin fell by 0.66% on Tuesday. Following on from a 3.72% slide on Monday, Bitcoin ended the day at $8,164.9.
A mixed start to the day saw Bitcoin rise to an early morning intraday high $8,245.5 before hitting reverse.
Falling well short of the first major resistance level at $8,465.33, Bitcoin slid to an early afternoon intraday low $8,051.7.
In spite of the pullback, Bitcoin steered clear of the first major support level at $8,045.33.
In the late afternoon, Bitcoin struck a high $8,202.1 before easing back to sub-$8,100 levels.
Finding support late in the day, Bitcoin moved back through to $8,100 levels to limit the loss on the day.
For the bulls, the extended bullish trend remained intact in spite of failing to break back through the 38.2% FIB of $9,734. Bitcoin has continued to hold above the 62% FIB of 7,245.
Across the rest of the top 10 cryptos, it was a mixed day for the majors on Tuesday.
Bitcoin Cash SV led the way down, sliding by 6.02%.
Binance Coin (-3.09%), Bitcoin Cash ABC (-2.35%), and EOS (-1.71%) also saw relatively heavy losses.
Ethereum (-1.16%), Litecoin (-1.18%), Stellar’s Lumen (-1.56%), and Tron’s TRX (-1.43%) saw more modest losses on the day.
Bucking the trend on the day was Ripple’s XRP, which rose by 0.95%.
The bearish start to the week saw the total crypto market cap fall from a Monday high $237.09bn to a Tuesday low $221.13bn. At the time of writing, the total market cap stood at $225.19bn.
Bitcoin’s dominance moved back through to 66% levels as some of the majors saw heavier losses on the day. Trading volumes did pick up, however, with 24-hour volumes hitting $80bn levels before easing back.
At the time of writing, Bitcoin was up by 0.23% to $8,183.3. A mixed start to the day saw Bitcoin fall to an early morning low $8,135.0 before striking a high $8,191.0.
Bitcoin left the major support and resistance levels untested early on.
Elsewhere, it was also a positive start to the day for the majors.
Binance Coin, Litecoin and Tron’s TRX led the way with gains of 1.02%, 1.14%, and 1.51% respectively.
Ripple’s XRP (+0.80%) and Stellar’s Lumen (+0.60%) also found support, while EOS (+0.15%) and Ethereum (+0.24%) trailed.
Bitcoin would need to move back through the morning high $8,191.0 to support a run at the first major resistance level at $8,256.37.
Support from the broader market would be needed, however, for Bitcoin to break through to $8,200 levels.
Barring a broad-based crypto rebound, the first major resistance level and Tuesday’s high $8,245.5 would likely cap any upside.
Failure to move through to $8,191.0 levels could see Bitcoin spend another day in the red.
A fall through to sub-$8,100 levels would bring the first major support level at $8,062.57 into play.
Barring a crypto meltdown, however, Bitcoin should continue to steer clear of sub-$8,000 levels.
In the event of a broad-based sell-off, the second major support level at $7,960.23 could come into play…
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.