Bitcoin and the Majors See Red after another Bullish Start

A blip or a dip? Bitcoin hits reverse at an early morning high $8,352.3. A move back through to $8,060 would suggest a blip…
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Bitcoin gained 2.32% on Wednesday. Following on from a 2.33% rise from Tuesday, Bitcoin ended the day at $8,136.6.

For the Bitcoin bulls, it was the first time since late July that Bitcoin managed to hold onto $8,000 levels by the day end.

On the day, a relatively range-bound start to the day saw Bitcoin fall to a late morning intraday low $7,832.5.

Steering well clear of the first major support level at $7,670.57, Bitcoin rallied to a late intraday high and new swing hi $8,209.0.

The late rally saw Bitcoin come within range of the first major resistance level at $8,213.67 before easing back.

The moves through the day reaffirmed the near-term bullish trend formed back at mid-December’s swing lo $3,215.2.

Elsewhere,

Across the top 10 cryptos, it was another sea of green for the majors. Leading the charge on the day was Stellar’s Lumen, which rallied by 22.97% on the day.

A number of the top 10 saw double-digit gains on the day, with Ethereum up by 14.4% to come a distant second to Stellar’s Lumen.

Binance Coin found much-needed support to gain 12.6%, with Ripple’s XRP (12.27%) and Litecoin (11.61%) also making solid gains.

Trailing the pack for a 2nd consecutive day was Bitcoin Cash ABC, which gained just 3.38% on the day.

A 3rd consecutive day of gains across the majors led to the market cap rising by $14bn to $255bn over the day.

This Morning,

At the time of writing, Bitcoin was down by 3% to $7,892.3. A choppy start to the day saw Bitcoin rise to a morning high and new swing hi $8,352.3 before hitting reverse.

An early rally saw Bitcoin break through the first major resistance level at $8,286.23 to hit $8,300 levels for the 1st time since 30th July.

The reversal saw Bitcoin fall through the first major support level at $7,909.73 to a morning low $7,800 before finding support.

Elsewhere, Litecoin and Ripple’s XRP also slid back into the red, with losses of 3.8% and 2.92% at the time of writing.

Leading the back through the early hours were Ethereum and Binance Coin, with gains of 2.63% and 2.05% respectively.

For the day ahead

Bitcoin would need to move back through to $8,060 levels to resume the upward trend seen through the week.

A move back through to $8,180 levels would support another run at $8,300 levels before any pullback.

Barring another crypto rally, Bitcoin will likely come up short of the second major resistance level at $8,435.87.

The first major resistance level at $8,296.23 and morning high $8,352.3 could cap the upside on the day.

Failure to move back through to $8,060 levels could see Bitcoin struggle through the day. A pullback through $7,860 could bring the morning low $7,800 back into play.

Barring a crypto meltdown, however, Bitcoin will likely steer well clear of sub-$7,700 support levels on the day.

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