Yahoo Finance Bitcoin Stalls, Hitting the Brakes on the Crypto Rally
Bitcoin’s upward momentum came to a halt late in the day on Tuesday, with Bitcoin sliding from a day high $11,780 to a closing $11,088.43, ending the day with just a 0.06% gain, following Monday’s 9.4% really.
Bitcoin was unable to hold on to its break through $11,759 resistance level late in the day, leading to a reverse move that continued through to the close and into the early hours of this morning.
The news wires were crypto friendly late in the day, with the South Korean government reportedly taking a softer stance on the cryptomarket, following the end of January ban on anonymous trading, though the news was not enough to support the cryptomarket, with the downward trend broad based across all the majors.
It’s been a solid recovery from the February 6th low and some profit taking was to be expected, with Bitcoin having rallied 99% from the 6th’s $5,920.72 low to Tuesday’s $11,780 February high.
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At the time of writing, Bitcoin was down 2.42% to $10,961.09, recovering from an intraday low $10,687 hit in the early hours of this morning, testing the $10,643 support level having fallen through its first major support level of $10,905 early on.
For Bitcoin, there will likely be plenty of resistance at $11,000, with any move through to $11,000 levels supporting a run towards its $11,604 resistance level, though we can expect some selling pressure at the 38.2% FIB Retracement level of $11,105.
The lack of negative sentiment should support some form of a recovery, the only question being whether investors sitting on the side lines will hold off for a full retracement to Tuesday’s high or jump in at current levels.
Looking at the Cboe Bitcoin Futures, the March contract is down $765 on the day to $10,920, which may hold up any break out this morning, while a pull back to test $10,643 support levels could happen should Bitcoin fail to break through and hold onto $11,000 levels through the middle part of the day.
Elsewhere, Litecoin was amongst the biggest fallers this morning, down 2.76% to $223.16, with Bitcoin Cash also struggling, down 2.04% to $1,362 at the time of writing.
Bucking the trend was Ethereum, which recovered from an intraday low $857.55 to $888.01, up 0.37% for the morning and the only major crypto in positive territory at the time of writing.
The cryptomarket will likely take its cues from Bitcoin however, with Bitcoin dominance continuing to rise, currently sitting at 39.2.
We can expect the cryptomarket to be in for a choppy day and investors will need to begin considering the softer approach by regulators to provide support for another rally that could see Bitcoin move up through to $12,000 levels.
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This article was originally posted on FX Empire
