It’s been a bearish start to the day for Bitcoin and the broader crypto market. Following a bearish day on Tuesday, Bitcoin and broader market continued to struggle through this morning.
At the time of writing, Bitcoin, BTC to USD, was down by 2.16% to $39,269.0. A mixed start to the day saw Bitcoin rise to an early morning high $40,460.0 before hitting reverse.
Falling short of Tuesday’s high $49,273.0 and the day’s first major resistance level at $41,125 Bitcoin slid to a late morning low $39,082.0.
The late morning sell-off saw Bitcoin fall through first major support level at $39,298 before finding support.
The Rest of the Pack
It’s been a bearish morning for the broader crypto market.
Through the morning, Crypto.com Coin bucked the trend, rising by 1.80%.
Bitcoin Cash SV (-0.45%) and Polkadot (-0.39%) saw relatively modest losses, however.
Through the early hours, the crypto total market rose to a mid-morning high $1,649bn before falling to a low $1,599bn. At the time of writing, the total market cap stood at $1,602bn.
Bitcoin’s dominance rose to an early high 46.06% before falling to a low 45.83%. At the time of writing, Bitcoin’s dominance stood at 45.89%.
For the Day Ahead
Bitcoin would need to move back through the first major support level at $39,298 and the $40,285 pivot to support a run at the first major resistance level at $41,125 and the 38.2% FIB of $41,592.
Support from the broader market would be needed, however, for Bitcoin to break out from $40,500 levels.
Barring an extended crypto rally, resistance at $40,500 would likely cap any upside.
In the event of a broad-based crypto rally, the first major resistance level at $41,125 and 38.2% FIB of $41,592 would likely cap any upside.
Failure to move back through the first major support level and the $40,285 pivot would bring the second major support level at $38,458 into play.
Barring an extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$38,000 levels.
The third major support level sits at $36,631.
Looking beyond the support and resistance levels, the 50 EMA has narrowed on the 100 and the 200 EMAs early on.
We have also seen the 100 EMA flatten on the 200 EMA testing support through the morning. A continued narrowing of the 50 EMA on the 100 EMA would bring sub-$39,000 levels and the second major support level into play.