The Crypto Daily – Movers and Shakers – 09/01/20

A choppy day left Bitcoin in the red. Safe haven status appeared to kick in as the situation in the Middle East escalated. The reversal was also aligned…
Bitcoin and Litecoin over dollar banknotes.

Bitcoin fell by 1.49% on Wednesday. Partially reversing a 5.09% rally from Tuesday, Bitcoin ended the day at $8,036.8.

A bullish start to the day saw Bitcoin rally to an early morning intraday high $8,442.0 before hitting reverse.

Bitcoin broke through the 23.6% FIB of $8,200 and the first major resistance level at $8,328.97.

On the reverse, Bitcoin slid to a late intraday low $7,877.6 before finding support.

Steering clear of the first major support level at $7,860.57, Bitcoin recovered to $8,000 levels to limit the loss.

The near-term bearish trend, formed at late June’s swing hi $13,764.0, remained firmly intact, in spite of the current week’s gains.

For the bulls, Bitcoin would need to break out from $11,000 levels to form a near-term bullish trend.

The Rest of the Pack

Across the rest of the top 10 cryptos, it was a mixed day for the majors.

Bitcoin Cash SV (+0.04%) and Monero’s XMR (+1.47%) bucked the trend on the day.

It was bearish for the rest of the majors.

Binance Coin (+-3.39%), EOS (-2.72%), Litecoin (-2.33%), Ripple’s XRP (-2.88%), Stellar’s Lumen (-2.51%), and Tron’s TRX (-2.84%) also saw heavy losses.

Bitcoin Cash ABC (-1.03%) and Ethereum (-1.73%) saw more modest losses on the day.

Through the first half of the week, the crypto total market cap jumped from $197bn levels to an early Wednesday current week high $220.27bn before sliding back to $209bn levels. At the time of writing, the total market cap stood at $211.91bn.

Bitcoin’s dominance eased back to 68% levels off the back of Wednesday’s pullback. Trading volumes hit $100bn levels on Wednesday before easing back. At the time of writing, volumes were at $92bn levels.

On the News Front

Bitcoin’s visit to $8,000 levels appeared to be driven by strong demand for cryptos in response to Iran’s missile strikes on Wednesday morning.

While Bitcoin’s safe-haven status continues to be questioned, the threat of war appears to be a scenario where cryptos are favored by the markets.

Bitcoin and the likes of Litecoin joined gold and crude oil prices in a surge early on Wednesday before tensions eased.

This Morning

At the time of writing, Bitcoin was down by 0.44% to $8,001.7. A bearish start to the day saw Bitcoin fall from an early morning high $8,036.8 to a low $7,925.0.

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

Elsewhere, it was a mixed start to the day.

Binance Coin (-0.27%) and Monero’s XMR (-2.47%) joined Bitcoin in the red early on.

It was a bullish start for the rest of the pack, however.

Bitcoin Cash SV (+1.00%) and Stellar’s Lumen (+1.18%) led the way early on.

For the Bitcoin Day Ahead

Bitcoin would need to move through to $8,120 levels to support a run at the first major resistance level at $8,360.0.

Support from the broader market would be needed, however, for Bitcoin to break out from the morning high $8,036.8.

Barring a broad-based crypto rally on the day, Bitcoin would likely come up short of $8,300 levels. Resistance at the 23.6% FIB of $8,200 would likely limit any upside.

In the event of a breakout, the first major resistance level would likely pin Bitcoin back on the day.

Failure to move through to $8,120 levels could see Bitcoin fall deeper into the red.

A fall back through the morning low $7,925.0 would bring the first major support level at $7,795.6 into play.

Barring a crypto meltdown, however, Bitcoin should steer clear of the second major support level at $7,554.4.

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