Bitcoin Sees Red Early. Avoiding sub-$9,000 Will be Key for the Majors

It’s a bearish start to the day. Bitcoin would need to move back through to $9,550 levels to support a rebound…
Bitcoin, Ethereum, Litecoin Digital cryptocurrencys on a notebook

Bitcoin fell by 0.13% on Monday. Partially reversing a 0.56% gain from Sunday, Bitcoin ended the day at $9,507.

A particularly bullish start to the day saw Bitcoin strike an early morning intraday high $9,663.6 before hitting reverse.

The early rally saw Bitcoin fall short of the first major resistance level at $9,730.87 and 38.2% FIB of $9,734.

Sliding back through the morning, Bitcoin fell to a late morning intraday low $9,376.7. Steering well clear of the first major support level at $9,204.27, Bitcoin recovered to an afternoon high $9,656.6.

Pressure from the broader market ultimately weighed, with Bitcoin pulling back into the red late in the day.

In spite of falling short of $10,000 levels, the extended bullish trend remained intact. Bitcoin will need to avoid a material pullback from the 38.2% FIB of $9,734 to maintain the extended bullish trend.

Elsewhere

Across the top 10 cryptos, it was a bearish day for the majors.

Leading the way down on the day were Stellar’s Lumen and Binance Coin, which slid by 3.03% and by 2.92% respectively.

Bitcoin Cash SV (-2.55%), Bitcoin Cash ABC (-1.88%) and EOS (-1.65%) weren’t far behind on the day.

While Ripple’s XRP joined Bitcoin with a modest loss of just 0.51%, Litecoin bucked the trend on the day, rising by 0.14%.

The moves through the start of the week saw Bitcoin’s dominance hover at 62.5% levels on the day.

A bearish start to the week weighed on the total crypto market cap, however, which fell from $266bn levels to $261bn levels on Monday.

There were no major news events to provide direction on the day. The broader market looked towards Bitcoin for cues, which continued to struggle at $9,500 levels.

Key on the day, for Bitcoin, was a hold above the major support levels, though falling short of the 38.2% FIB could test investor resilience in the coming days.

This Morning

At the time of writing, Bitcoin was down by 0.51% to $9,458.7. A mixed start to the day saw Bitcoin rise to an early morning high $9,532.3 before falling to a low $9,380.

In spite of the choppy start to the day, Bitcoin left the major support and resistance levels untested early on.

Across the rest of the pack, Bitcoin Cash SV bucked the trend early on, rising by 0.5%. It was red for the rest of the majors. Leading the reversal were Binance Coin and Ethereum, which were down by 1.54% and 1.42% respectively.

For the day ahead

Bitcoin would need to move back through to $9,550 levels to support a run at the first major resistance level at $9,704.63.

Support from the broader market would be needed, however, for Bitcoin to break out from $9,500 levels.

Barring a broad-based crypto rally, the first major resistance level and the 38.2% FIB of $9,734 would likely limit any upside on the day.

Failure to move through to $9,550 levels could see Bitcoin fall deeper into the red. A fall through the morning low $9,380 would bring the first major support level at $9,343.03 into play.

Barring a crypto meltdown, Bitcoin should steer clear of the second major support level at $9,179.07.

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