Bitcoin found some respite mid-week, rising by 2.92% on Wednesday, reversing Tuesday’s 2.49% fall, to end the day at $3,535.6.
The upside through the day brought to a temporary end a downward trend in Bitcoin’s intraday highs from Saturday’s high $3,800.1 to Tuesday’s high $3,551.5.
A bullish morning saw Bitcoin rally through to a late morning high $3,570, breaking through the first major resistance level at $3,530.6 before easing back.
Upbeat sentiment across the broader market supported an early afternoon bounce back, with Bitcoin rallying to a late afternoon intraday high $3,617.4, breaking back through the first major resistance level at $3,530.6 to come up against the second major resistance level at $3,625.9 before a late pullback to $3,500 levels.
Bitcoin’s moves were echoed across the broader market, with the Bitcoin bulls looking to bring to an end a bearish trend that has plagued the cryptomarket throughout the year and more significantly since Bitcoin’s swing hi $9,999 back in early May.
The gains on the day, for Bitcoin and the broader market, came in spite of a lack of price action to drive demand, with the positive start to the day driving investor appetite before hitting resistance levels, with profit taking continuing to pin Bitcoin back from a break out to bring a shift in sentiment across the broader market.
Through the final quarter of the year, there had been hopes of increased interest from deep pocketed institutional investors, which has ultimately failed to materialise and, as this extended bearish trend persists, some scepticism over whether even a February Bitcoin ETF approval would attract institutional money could be Bitcoin’s Achilles Heel at the turn of the year.
While the Bitcoin bulls have attempted to make their case for a 2019 rebound, the negative undercurrent is unlikely to reverse until the cryptomarket goes through its real pain point, which is the introduction of a regulatory platform that aligns the cryptomarket more closely with the broader financial market.
Until then, the SEC will likely continue to drag its feet and the pendulum will continue to swing, not bad for day traders looking for some volatility, but not great for the broader market and longer term investors who have certainly been Bitcoined this year.
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At the time of writing, Bitcoin was down 2.54% to $3,445.9, moves through the early morning seeing Bitcoin slide from a start of a day morning high $3,547.1 to a morning low $3,437.7, the day’s major support and resistance levels left untested early on.
For the Bitcoin bulls, a move back through to $3,500 levels and a hold above $3,520 by the early afternoon would signal a bounce back to bring $3,600 levels and the first major resistance level at $3,630.33 into play before any pullback. More significant gains may be hard to come by for the bulls, with Wednesday’s high $3,617.4 likely to leave Bitcoin short of $3,700 levels in the event of a rebound.
Failure to move back through to $3,500 levels will leave Bitcoin deep in the red, a fall through the morning low $ 3,437.7 bringing the day’s first major support level at $3,427.93 and $3,300 levels into play before any recovery.
The Bitcoin bears are still eyeing sub-$3,000 levels and the Bitcoin bulls are certainly not out of the woods just yet.
This article was originally posted on FX Empire
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