Wednesday Delivers another Crypto Surge but Cracks Are Starting to Appear

While it’s another positive start to the day, some red is beginning to hit the board. Support levels could be tested later in the day should sentiment not improve.
Bitcoin and Litecoin over dollar banknotes.

Bitcoin consolidated Tuesday’s 17.3% rally on Wednesday, with a 1.13% gain to end the day at $4,978.

A bullish start to the day saw Bitcoin rise to a morning high $5,090.1 before easing back to sub-$5,000 levels.

Steering clear of the day’s major support and resistance levels early on, Bitcoin found support through the afternoon.

Rallying through to an intraday high $5,335.3, Bitcoin broke through the first major resistance level at $5,290.2 before easing back.

A late pullback saw Bitcoin give up $5,000 levels for a second consecutive day.

Elsewhere

Across the top 10 cryptos, it was a mixed day coming off the back of Tuesday’s broad-based crypto rally.

Bitcoin Cash ABC stole the show for a second consecutive day, rallying by 23.3% off the back of Wednesday’s 45.7% surge. The breakout reaffirmed the near-term bullish trend form at late January’s swing lo $105.

Litecoin was once again 2nd best. A 10.35% rally could have been much more had it not been for a late pullback. Moves through the day saw Litecoin strike a day high $99.89. A move through to $100 levels would see Litecoin form a near-term bullish trend. It wasn’t to be on the day.

For the rest of the pack, Binance saw the heaviest losses on the day, sliding by 6.3%. There were also losses for Ripple’s XRP (-3.6%), Ethereum (-1.96%), and Stellar’s Lumen (-0.49%).

Moves through the first half of the week saw Bitcoin Cash overtake Litecoin by market cap to move into the number 4 spot. Last year’s hard fork had certainly caused investors some pain, but the recovery has been ongoing since late January.

The latest moves led the total crypto market cap to a high $185.19bn before easing back to $170 levels. 24-hour volumes managed to hold, in spite of the choppy end to the day on Wednesday. Volumes hit $88bn levels before easing back, suggesting that there’s still plenty of interest at current price levels.

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At the time of writing, Bitcoin was up 0.44% to $4,999.7. A relatively range-bound start to the day saw Bitcoin rise from a morning low $4,916 to a morning high $5,066.6.

Moves through the early morning saw Bitcoin leave the major support and resistance levels untested.

Elsewhere, there was some red on the crypto-board. While Binance Coin was on the move, up by 2.75%, Stellar’s Lumen and Cardano’s ADA saw the heaviest losses early on. The pair were down by 1.77% and by 1.43% respectively.

For the day ahead

A move back through to $5,050 levels by the early afternoon would support another Bitcoin and broad-based crypto rally. A move through the morning high $5,066.6 would bring $5,200 levels back into play before any pullback.

Barring a broad-based crypto rally, however, we would expect Wednesday’s high $5,335.5 to be out of reach on the day.

Failure to move through to $5,050 levels could see Bitcoin hit reverse later in the day. A fall back through to $4,950 levels could bring $4,800 levels into play before any recovery. Barring a crypto meltdown, however, we would expect Bitcoin to steer well clear of the first major support level at $4,768.3.

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