Bitcoin Joins the Majors in a Mass Sell-Off

Wednesday’s sell-off continued into this morning. Bitcoin will need to move back through to $12,200 levels to steady the ship…
Bitcoin 1

Bitcoin fell by 3.75% on Wednesday. Reversing a 2.09% gain from Tuesday, Bitcoin ended the day at $12,093.

A bullish start to the day saw Bitcoin rally to a late morning intraday high $13,174 before hitting reverse.

The moves through the morning saw Bitcoin break through the first major resistance level at $12,881.07.

Falling short of the second major resistance level at $13,204.13, Bitcoin slid to a late intraday low $11,529.0.

While falling through the first major support level at $12,168.47 and second major support level at $11,778.93, Bitcoin steered clear of the 23.6% FIB of $11,275.

Support late in the day led to recovery to $12,000 levels, with Bitcoin managing to move back through the second major support level.

Elsewhere

Across the top 10 cryptos, it was a sea of red for the majors.

Leading the way down were EOS and Litecoin, which tumbled by 10.56% and 9.35% respectively.

For the rest of the pack, Binance Coin fell by 3.84%, one of the more modest losses on the day.

Bitcoin Cash ABC (-6.74%), Bitcoin Cash SV (-7.64%), Ethereum (-6.27%), Ripple’s XRP (-8.46%) and Tron’s TRX (-6.18%) were less fortunate…

Bitcoin’s dominance slipped back from 65% levels to 64.8% at the time of writing.

For the Bitcoin bulls, the near-term bullish trend, formed at mid-December’s swing lo $3,215.2 remained firmly intact. Bitcoin continued to hold well above the 38.2% FIB of $9,734.0.

The broad-based crypto sell-off dragged the total crypto market cap from $357bn levels to a Wednesday low $324.04bn before finding support. At the time of writing, the total crypto market cap stood at $331.32bn.

This Morning

At the time of writing, Bitcoin was down by 1.18% to $11,950.0. A bearish start to the day saw Bitcoin fall from a morning high $12,093.2 to a low $11,916.

Bitcoin left the major support and resistance levels untested at the start of the day.

Elsewhere, the sea of red continued into the early hours of this morning.

Ethereum was down by just 0.33%, while the Binance Coin led the way down, falling by 1.01% at the time of writing.

For the day ahead

A move back through to $12,260 levels would support a shift in sentiment through the day. Bitcoin would need the support of the broader market, however, to break out from this morning’s high $12,093.2.

Barring a broad-based crypto rebound, Bitcoin would likely fall short of the first major resistance level at $13,001.67

In the event of a broad-based crypto rally, Bitcoin would likely visit $12,800 levels before any pullback.

Failure to move back through to $12,260 levels could see Bitcoin give up more of the current week’s gains.

A fall through to $11,500 levels would bring the first major support level at $11,356.67 into play before any recovery.

Barring another crypto meltdown, the 23.6% FIB of $11,275 should limit the downside on the day.

In the event of a meltdown, sub-$11,000 levels could be visited before any recovery…

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