Bitcoin slid by 4.53% on Wednesday. Following on from a 1.86% fall on Tuesday, Bitcoin ended the day at $9,727.4.
A relatively bullish morning saw Bitcoin rise from a morning low $10,063 to an early afternoon intraday high $10,370.
Holding above the major support levels, Bitcoin came within range of the first major resistance level at $10,379 before succumbing to a crypto meltdown.
The meltdown saw Bitcoin slide to a late afternoon intraday low $9,570. Bitcoin fell through the first major support level at $10,005 and second major support level at $9,826.
Of greater significance was a fall through the 38.2% FIB of $9,734.
While finding support late in the day to recover to $9,700 levels, Bitcoin failed to move back through the 38.2% FIB.
For the bulls, the extended bullish trend remained intact. While Bitcoin fell through the 38.2% FIB, Bitcoin has continued to hold well above the 62% FIB of $7,245.
A 2nd consecutive day in the red reversed gains for the current month, however, leaving Bitcoin down by 3.57% for August.
Across the rest of the top 10 cryptos, it was a sea of red for the majors.
Binance Coin (-8.76%), EOS (-8.35), Litecoin (-8.13%), and Monero’s XMR (-8.06%) all saw heavy losses.
Things were not much better for the rest, with Bitcoin Cash ABC and Ripple’s XRP seeing modest losses relative to the pack. The pair ended the day down by 4.30% and by 4.76% respectively.
Wednesday afternoon’s sharp sell-off led the market cap down from $265bn levels to $251bn. At the time of writing, the total market cap stood at $249.19bn as the markets faced another selling spree in the early hours.
At the time of writing, Bitcoin was down by 1.34% to $9,596.8. A bearish start to the day saw Bitcoin slide from a morning high $9,729.7 to a low $9,570.
In spite of the early sell-off, Bitcoin managed to steer clear of the major support levels.
Elsewhere, it was red across the crypto board. Leading the way down were Binance Coin (-4.85%), Bitcoin Cash ABC (-2.97%), Stellar’s Lumen (-2.36%), and Ethereum (-2.18%).
EOS (-1.31%), Monero’s XMR (-1.51%), Litecoin (-1.53%), and Ripple’s XRP (-1.65%) were the best of the worst.
Bitcoin would need to break through the 38.2% FIB of $9,734 to $9,900 levels to support a return to $10,000 levels.
Support from the broader market would be needed, however, for Bitcoin to break out from the 38.2% FIB
Barring broad-based crypto rebound, Bitcoin would likely come up well short of $10,000 levels on the day.
In the event of a crypto rebound, the first major resistance level at $10,208.75 would likely limit any upside.
Failure to break through the 38.2% FIB to hit $9,900 levels could see Bitcoin slide deeper into the red.
A fall through $9,550 would bring the first major support level at $9,408.27 into play before any recovery.
Barring a crypto meltdown, Bitcoin should continue to steer clear of sub-$9,400 levels and the second major support level at $9,089.13.