After relatively bullish day for the crypto majors on Tuesday, it was another bullish start to the day for the broader market.
At the time of writing, Bitcoin, BTC to USD, was up by 2.81%to $40,611.5.
A mixed start to the day saw Bitcoin fall to an early morning low $38,933.0 before making a move.
Steering clear of the first major support level at $37,416, Bitcoin rallied to a late morning intraday high $40,900.0.
Bitcoin broke through the first major resistance level at $40,587 to test resistance at $41,000 before easing back.
In spite of easing back, Bitcoin avoided a fall back through the first major resistance level through the morning.
The Rest of the Pack
It has been another mixed morning for the broader crypto market.
At the time of writing, Polkadot was down by 0.92% to buck the trend through the morning.
It has been a bullish morning for the rest of the majors, however.
Through the morning, Ripple’s XRP was up by 13.84% to lead the way.
Through the early hours, the crypto total market fell to an early morning low $1,498bn before rising to a high $1,561bn. At the time of writing, the total market cap stood at $1,555bn.
Bitcoin’s dominance fell to an early low 48.70% before rising to a high 49.24%. At the time of writing, Bitcoin’s dominance stood at 49.16%.
For the Afternoon Ahead
Bitcoin would need to avoid a fall back through the first major resistance level at $40,587 bring the 38.2% FIB of $41,592 into play.
Support from the broader market would be needed for Bitcoin to breakout from the morning high $40,900.0, however.
Barring an extended crypto rally, the 38.2% FIB and the second major resistance level at $41,673 would likely cap any upside.
In the event of another extended crypto rally, Bitcoin could target $45,000 levels. The third major resistance level sits at $44,844.
A fall back through the first major resistance level and a fall through the $38,502 pivot would bring the first major support level at $37,416 into play.
Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$38,000 levels, however. The second major support level sits at $35,331.
Looking beyond the support and resistance levels, we saw the 50 EMA pull further away from the 100 and 200 EMAs this morning. This supported the morning gains and a run at $41,000 levels.
We also saw the 100 EMA pull further away from the 200 EMA, providing further support to Bitcoin and the crypto bulls.
A further widening of the 50 from 100 and 200 EMAs this afternoon would bring $42,000 levels into play.
Key going into the afternoon will be for Bitcoin to avoid a fall back through the first major resistance level to sub-$40,000 levels.