Bitcoin and the Majors See Volatility Spike to Test Investor Resilience

The majors are on the move early, looking to consolidate Wednesday’s gains. With volatility on the rise, holding above key levels is a must to avoid a reversal.
Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Bitcoin rose by 2.79% on Wednesday. Partially reversing a 12.9% tumble from Tuesday, Bitcoin ended the day at $9,682.6.

A relatively bearish start to the day saw Bitcoin fall to a late morning intraday low $9,084.7 before finding support.

Steering well clear of the first major support level at $8,846.87, Bitcoin bounced back to a late afternoon intraday high $9,975.

In spite of the afternoon rally, Bitcoin came up short of the first major resistance level at $10,505.87. Of greater significance, however, was a move back through the 38.2% FIB of $9,734, before a final hour pullback.

Wednesday’s gain was just the 3rd in the last 8-days as the bears look to claw their way back.

In spite of the sell-off that kicked in on 10th July, the extended bullish trend remained intact. Bitcoin will need to steer clear of the 62% FIB of $7,245 and move back through to $10,000 levels to avoid a resumption of the extended bearish trend.

Elsewhere

Across the top 10 cryptos, it was a sea of green for the majors, with Litecoin leading the way ahead of this summer’s halving event.

Litecoin surged by 13.19% on the day, with Binance Coin and Tron’s TRX not far behind, rallying by 10.66% and 9.18% respectively.

Bitcoin Cash SV (7.83%), Ethereum (6.49%), Ripple’s XRP (5.33%) and EOS (4.82%) also saw solid gains on the day.

Bitcoin Cash ABC trailed the pack on the day, rising by just 1.97%

Bitcoin’s dominance held onto 65% levels in spite of Bitcoin’s modest gains on the day. The broad-based crypto rally led the total market cap from a Wednesday low $248.42bn to $270.53bn at the time of writing.

Trading volumes stood at $82.23bn at the time of writing, easing back from $94bn levels hit during the Wednesday session.

This Morning

At the time of writing, Bitcoin was up by 1.99% to $9,875.6. A bearish start to the day saw Bitcoin fall to an early morning low $9,560.3.

Steering well clear of the first major support level at $9,186.53, Bitcoin struck a morning high $10,000 before easing back.

Whilst coming up short of the first major resistance level at $10,076.83, Bitcoin broke through the 38.2% FIB of $9,734.

Elsewhere, Bitcoin Cash ABC and Bitcoin Cash SV were leading the way, with gains of 4.95% and 7.83% respectively.

Tron’s TRX (4.32%), Litecoin (3.52%) and Ethereum (+3.56%) were also on move early on.

Ripple’s XRP trailed the pack through the morning, rising by just 1.1% at the time of writing.

For the day ahead

Bitcoin would need to hold above the 38.2% FIB of $9,734 to bring $10,000 levels back into play.

Support from the broader market would be needed, however, to give Bitcoin a run at the first major resistance level at $10,076.83.

In the event of an extended crypto rally, Bitcoin could eye up the second major resistance level at $10,471.07 before any pullback.

Failure to hold above the 38.2% FIB of $9,734 could lead to a slide through to sub-$9,600 levels. A fall through to $9,570 levels would bring the first major support level at $9,186.53 into play.

Barring a crypto meltdown, however, the 38.2% FIB of $9,734 should limit the downside on the day.

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