Bitcoin had a mixed weekend, with Saturday’s 9.2% rally going into reverse on Sunday, with Bitcoin ending the day down 5.6% at $10,474.99.
There was certainly no risk of a move through to $12,000 levels, with investors quick to lock in profits ahead of what continues to be a Sunday sell-off.
With the Cboe Bitcoin Futures March contract having closed out the week at $10,150, there was very little chance of Bitcoin holding on to $11,000 levels by the end of the weekend.
In spite of the Sunday fall, it was a positive week for Bitcoin and the cryptomarket, with a lack of regulatory chatter seeing Bitcoin rally 29.7% from Monday’s opening $8,077.25 through to the end of the weekend.
Of greater significance will be the fact that Bitcoin has managed to cover to $10,000 levels and find strong support at $10,000, a far cry from the first week of February’s $5,920.72 low, from which Bitcoin has gained 77% to Sunday’s close.
While market sentiment towards the cryptocurrencies has improved over the last week, Bitcoin’s dominance has been on the rise of late, currently sitting at 36.9%, with the crypto market cap having eased back through the weekend, with the total cryptomarket cap now sitting at $488.7bn, pulling back from the week’s $519.43bn high hit on Sunday morning.
At the time of writing, Bitcoin was up 1.24% to $10,549.99, with the Chinese New Year and public holidays in North America providing little negative chatter to impact Bitcoin and the majors, while volumes were on the lighter side this morning.
In spite of the lack of a market chatter, the general sentiment has seen a significant improvement since the beginning of the month, which continues to support a bullish trend for Bitcoin.
Bitcoin’s first major resistance level sits at $11,132, which is still some way off this morning, but a move through to $10,850 could provide some momentum to test $11,000 resistance levels later in the day.
Looking at the Cboe Bitcoin futures March contract, this morning’s $425 rise to $10,560 has provided some support, but as has been the case since the launch, the futures market has produced plenty of resistance for Bitcoin and the cryptocurrencies.
While we will expect Bitcoin to hold on to today’s gains and have a run at $11,000, there will be plenty of support at $10,000, with any pull-back through to the 23.6% FIB Retracement of $10,030 likely to draw in plenty of interest barring any particularly negative regulatory news.
Elsewhere, the story of the day is the Litecoin fork and Litecoin Cash, which has rallied 145% to $3.2 at the time of writing, with Litecoin standing its ground, up 0.99% to $216.45, avoiding immediate sell-off following investors receiving their Litecoin Cash coins after the Sunday night fork.
It’s looking bullish, following Sunday’s slide…
This article was originally posted on FX Empire
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