Following Bitcoin’s positive start to the week, it was back into the red for the majors.
Bitcoin fell by 1.22% on Wednesday. Partially reversing a 2.37% rally on Tuesday, Bitcoin ended the day at $5,479.6.
A bullish start to the day saw Bitcoin look to buck the trend for a 2nd consecutive day. Bitcoin struck an early morning intraday high $5,690 ahead of a mid-morning sell-off.
The early rally saw Bitcoin break through the first major resistance level at $5,666.5 before hitting reverse.
Reversing through the late morning, Bitcoin fell through the first major support level at $5,406.6 to an intraday low $5,407.1.
A recovery to $5,500 levels by the early afternoon was short-lived, with Bitcoin closing out the day at $5,400 levels.
In spite of the reversal, Bitcoin remained in positive territory for the current week. The sell-off led to Bitcoin’s dominance to rise to 54.5%, reflecting a more bearish sentiment from last week’s sub-52% levels.
Across the top 10 cryptos, it was a sea of red, with Binance Coin the only major to buck the trend on the day.
Binance Coin gained 2.24% on Wednesday, with a late rally delivering the gains and bringing to an end a run of 3 consecutive days in the red.
Elsewhere, Stellar’s Lumen and EOS were amongst the worst performers, sliding by 6.94% and by 6.23% respectively.
The broad-based sell-off saw the total crypto market cap fall from $183bn levels to $174bn levels before support kicked. While not the largest of single day slides seen in the total market cap, investors were reminded just how quickly sentiment can change.
On the news front, there was nothing negative to influence the sell-off as investors continue to wait on for the SEC Bitcoin ETF decision. Profit taking at $5,600 levels likely contributed to the reversal in Bitcoin that impacted the broader market.
At the time of writing, Bitcoin was up by 0.15% to $5,487.9. Wednesday’s late recovery continued into the early hours of Thursday, providing some much needed early support. The day’s major support and resistance levels were left untested early on.
Elsewhere in the cryptomarket, a number of the majors were looking for a rebound from heavier losses on Wednesday.
Bitcoin Cash ABC was up by 1.4%, with Litecoin up by 1.42% at the time of writing. Bucking the trend in the first hour of the day, however, was Binance Coin once more. Binance coin was down by 1.8% at the time of writing.
Bitcoin would need to move through to $5,530 levels to resume the current upward trend seen since 2nd April’s 17.3% rally that led to a breakthrough to $5,000 levels.
A move through to $5,530 would bring $5,600 levels and the first major resistance level at $5,644.03 into play. Bitcoin would need support from the broad market, however, to break out from $5,500 levels on the day.
Failure to move through to $5,530 could see Bitcoin take another hit on the day. A fall through to $5,450 levels could bring sub-$5,400 levels into play before any recovery.
Barring another crypto meltdown, however, Bitcoin will likely steer clear of the first major support level at $5,361.13.
Getting through the morning will be key for the bulls. Is the positive start to the day just a spillover from late Wednesday or a rebound?