Yahoo Finance Bitcoin – It’s All About The Monday
Bitcoin gained 0.55% on Sunday, following on from a 0.05% rise on Saturday, to end the day at $3,301.5, a second consecutive day in the green reducing the weekly loss to 9.35%.
A broad based crypto rally at the start of the day saw Bitcoin break through the first major resistance level at $3,333.33 to an early morning high $3,371.8 before striking a mid-day intraday high $3,383.0, Bitcoin coming up against the second major resistance level at $3,383.27.
Resistance on the way through to $3,400 proved to be too great on the day, with Bitcoin falling back to sub-$3,300 levels late in the day before regaining the $3,300 handle by the day’s end.
While some profit taking pinned Bitcoin back from more material gains through the day, sub-$3,300 support was good enough to prevent a fall through to sub-$3,000 levels by the end of the weekend, a move that was almost carved in stone mid-way through the week, leading Bitcoin to strike a new swing lo $3,215.2 on Saturday.
Elsewhere in the markets, there was certainly some relief over the weekend, with far less pain for the cryptomarket than from earlier in the week, with Litecoin the weekend’s rally winner.
The market survived another crypto storm, with the total crypto market cap moving up to $103.54bn, a sub-$3,000 Bitcoin and sub-$100bn total market cap a doomsday scenario for Bitcoin and the broader market.
It was relatively quiet on the news front through the day, with Litecoin’s second half of a week recovery and Sunday rally coming off the back of news hitting the wires of Litecoin Lightning Network being ready for deployment and soon to go live on CoinGate. The announcement raises the prospects of greater Litecoin adoption, supported by the anticipated improvements in both speed and security.
Increased utility would suggest upward momentum in pricing, with Litecoin providing the broader market with some much needed support over the weekend.
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At the time of writing, Bitcoin was up 0.25% to $3,309.6, with Bitcoin falling from a start of a day morning high $3,328.1 to a morning low $3,280.0 before recovering to $3,300 levels, the day’s major support and resistance levels left untested early on.
For the day ahead, a move back through $3,320 would bring the first major resistance level at $3,364.27 into play, while Bitcoin will likely continue to struggle to take run at $3,400 levels to test the second major resistance level at $3,427.03.
Failure to move back through $3,320 could see Bitcoin hit reverse later in the day, a fall through the morning low $3,280.0 bringing the first major support level at $3,257.47 into play, with the second major support level at $3,213.43 there to safeguard a slide to $3,100 levels in the event of a reversal.
For the Bitcoin bulls, you would need to go back to 15th October to find the last positive start to a week, when Bitcoin enjoyed a 6.3% rally on the day and, when considering the fact that Bitcoin has had weekly losses in 6 of the 8 weeks from the week of 22nd October, there is certainly some influence on how the Bitcoin week begins.
Each of the 2 weekly gains made in the last 8 weeks amounted to less than $100, which would be considered a relatively flat week by Bitcoin standards, making the relationship between Monday and the weekly performance all the more poignant.
So, for the bulls it will be a case of holding onto this morning’s gains and hoping that history repeats itself….
This article was originally posted on FX Empire
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