Bitcoin tumbled by 7.72% on Wednesday. Following on from a 4.44% fall on Tuesday, Bitcoin wrapped up the day at $10,064.6.
Bearish from the start of the day, Bitcoin fell from an early intraday high $10,909 to a late morning low $10,403.
The early pullback saw Bitcoin fall through the first major support level at $10,646.67.
Bitcoin found support through the late morning to move back through the first major support level before succumbing to market forces.
A broad-based crypto sell-off saw Bitcoin slide to a late intraday low $9,966 before recovering to $10,000 levels.
The afternoon sell-off saw Bitcoin fall through the first major support level at $10,646.67 and second major support level at $10,389.33. Bitcoin’s fall to sub-$10,000 was the first since 1st August.
For the Bitcoin bulls, the near-term bullish trend, formed at mid-December’s swing lo $3,215.2 remained intact. Bitcoin continued to find support above the 38.2% FIB of $9,734.
5 days in the red out of the last 6 left Bitcoin in the red for the current month, however. To Tuesday, Bitcoin was down by 0.23%.
While Bitcoin’s dominance held relatively steady at 68% levels, the sell-off saw Bitcoin’s market cap slide from $190bn levels to a low $172.99bn before finding support.
At the time of writing, Bitcoin’s market cap stood at $178.49bn.
There were no major news events that contributed to the recent downward trend. Risk aversion across the more mature asset classes, however, failed to provide support. The latest moves suggest that Bitcoin and the broader crypto market are yet to be considered a safe haven.
At the time of writing, Bitcoin was down by 1.34% to $9,929.5. A mixed start to the day saw Bitcoin rise to an early morning high $10,249 before hitting reverse.
Falling well short of the first major resistance level at $10,660.4, Bitcoin slid to a mid-morning low $9,522.
The early morning sell-off saw Bitcoin fall through the 38.2% FIB of $9,734 and first major support level at $9,717.4.
Bitcoin found support from the broader market in the last hour, leading to a move back through the first major support level and 38.2% FIB.
For the Day Ahead
Holding above the 38.2% FIB of $9,734 through the early afternoon would support a run at $10,000 levels.
Bitcoin would need the support of the broader market, however, to take a run at the morning high $10,249.
Barring a broad-based crypto rebound, Bitcoin would likely fall well short of the first major resistance level at $10,660.4.
Failure to hold above the 38.2% FIB of $9,734 could see Bitcoin slide deeper into the red.
A fall back through the first major support level to $9,500 levels would bring the second major support level at $9,370.2 into play.
Barring another crypto meltdown, however, we would expect Bitcoin to steer clear of sub-$9,000 support levels.
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The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets