Bitcoin Fuels a Bullish Start to the Week for the Majors

The Bulls will be eyeing the 23.6% FIB of $11,275 as Bitcoin looks to further reverse last week’s sell-off.
Cryptomania

Bitcoin rallied by 5.9% on Monday. Partially reversing a 10.74% slide from last week, Bitcoin ended the day at $10,938.

A bearish start to the day saw fall to an early morning intraday low $10,280 before making a move. Steering clear of the major support levels, Bitcoin struck a late morning high $10,863.

The rally saw Bitcoin break through the first major resistance level at $10,548.13 and second major resistance level at $10,764.07.

Through the 2nd half of the day, Bitcoin found support at sub-$10,700 levels before striking a final hour intraday high $10,946.

The late move saw Bitcoin break back through and hold above the second major resistance level at $10,764.07.

It was Bitcoin’s first visit to $10,900 levels since last Wednesday.

Bucking the trend from the broader market, Bitcoin holds onto positive territory for the current month, in spite of last week’s sell-off, which leaves the extended bullish trend intact. For the month of August, Bitcoin was up by 8.43%, with only Monero’s XMR (+11.36%) and Binance Coin (+3.67%) also seeing green.

Bitcoin’s hold onto $10,000 levels reaffirmed the bullish trend formed at mid-December’s swing lo $3,215.2

Elsewhere

Across the top 10 cryptos, it was green for the majority.

Bitcoin Cash SV led the way on the day, rallying by 5.29%. Ethereum and Binance Coin also saw solid gains. The pair ended the day up by 3.89% and 3.19% respectively.

It was less impressive for Litecoin and EOS which reversed losses late in the day. Litecoin rose by 1.14%, while EOS gained 0.85%.

Bucking the trend on the day was Ripple’s XRP, which failed to find support from the broader market to end the day down by 0.59%.

Bitcoin’s strong response to last week’s sell-off led to a rise in dominance to 69.1%.

Upward momentum across the majors, largely driven by Bitcoin, also led to a total market cap recovery from $269bn levels to $282bn levels.

24-hr volumes were on the lighter side, however, briefly visiting $51bn levels before easing back to $50bn levels. That’s well below $136bn levels hit in June…

This Morning

At the time of writing, Bitcoin was down by 0.12% to $10,925. A mixed first hour saw Bitcoin strike a high $10,993 before easing back. Coming up against resistance at $11,000, Bitcoin eased back to a low $10,905 before finding support.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day. Bitcoin Cash SV led the way with a trend-bucking 1.52% gain. Stellar’s Lumen and Tron’s TRX also avoided red, with both up by 0.16% at the time of writing.

It was a bearish start for the rest of the majors, however. Litecoin saw the heaviest loss in the first hour, down by 1.15% at the time of writing.

[fx-image src=https://www.tradingview.com/x/vQGVKsa7/ originalWidth=761 ratio=1.3 data-zoom-target=https://www.tradingview.com/x/vQGVKsa7/]

For the Bitcoin day ahead

Bitcoin would need to hold onto $10,900 levels through the morning to support a run at the first major resistance level at $11,174.67.

Support from the broader market would be needed, however, for Bitcoin to break through to $11,000 levels.

In the event of another Bitcoin break out, the 23.6% FIB of $11,275 and second major resistance level at $11,411.33 would likely come into play.

Failure to hold onto $10,900 levels could see Bitcoin slide deeper in the red.

Barring a fall through to $10,720 levels, Bitcoin should steer well clear of the first major support level at $10,490.67.

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