Following Tuesday’s broad-based crypto meltdown, it’s been a bearish Wednesday morning.
At the time of writing, Bitcoin, BTC to USD, was down by 0.70% to $46,521.0.
A mixed start to the day saw Bitcoin rise to an early morning high $47,351.0 before hitting reverse.
Falling well short of the 23.6% FIB of $50,473 and the first major resistance level at $52,085, Bitcoin slid to a late morning current day low $44,472.0.
Steering clear of the first major support level at $42,417, however, Bitcoin found support to move back through to $46,500 levels.
The Rest of the Pack
It has been a mixed morning for the broader crypto market.
It’s been a bearish morning for the rest of the majors, however.
Ethereum (-0.23%) and Polkadot (-0.13%) saw relatively modest losses, however.
Through the early hours, the crypto total market cap rose to an early morning high $2,138bn before falling to a low $1,970bn. At the time of writing, the total market cap stood at $2,083bn.
Bitcoin’s dominance fell to an early morning low 41.67% before rising to a high 42.44%. At the time of writing, Bitcoin’s dominance stood at 42.00%.
For the Afternoon Ahead
Bitcoin would need to move through the $47,652 pivot to bring the first major resistance level at $52,085 into play.
Support from the broader market will be needed, however, for Bitcoin to breakout from the 23.6% FIB of $50,473.
Barring a broad-based crypto rebound the 23.6% FIB would likely pin Bitcoin back.
In the event of an extended rally through the afternoon, Bitcoin could test resistance at $55,000 before any pullback. The second major resistance level sits at $57,320.
Failure to move through the $47,652 pivot would bring the first major support level at $42,417 back into play.
Barring another extended sell-off through the afternoon, however, Bitcoin should avoid sub-$40,000 and the second major support level at $37,984.
The 38.2% FIB of $41,592 should limit the downside.
Looking beyond the support and resistance levels, we saw bearish crosses this morning. The 50 EMA crossed through 200 EMA in the early hours. We also saw the 100 EMA cross through the 200 EMA in the late morning.
Through the morning, the 50 EMA continued to pullback from both the 100 and 200 EMA, which was also a bearish signal.
A further pullback of the 50 EMA from the 100 and 200 EMAs would bring support levels back into play. For the bulls, a move back through to $47,500 levels will be key going into the afternoon.