Bitcoin slid by 5.66% on Friday, partially reversing a 10.62% rally on Thursday, to end the day at $3,976.
The day’s loss was the first in seven, with Bitcoin having enjoyed 6 consecutive days in the green in the run up to Friday to leave Bitcoin with a 20.5% gain for the current week.
A bullish start to the day would have had the bulls eyeing another day of gains, with Bitcoin rising to an early morning intraday high $4,300, but that’s as bullish as it got, with Bitcoin falling well short off the first major resistance level at $4,415.63, Bitcoin unable to break out from Thursday’s high $4,299.
Tracking the broader market through the day, Bitcoin pulled back to a late in the day intraday low $3,902, coming within range of the first major support level at $3,896.73 before steadying.
Some froth came off the top, investors pulling out ahead of the weekend, with the day’s losses coinciding with another dark day in the global equity markets, as political wrangling on Capitol Hill and general panic over the economic outlook weighed.
Higher funding costs and global financial market malaise, coming off the back of concerns of a material slowdown in the global economy, are certainly reasons why investors may not be as laissez-faire about the cryptomarkets and that should mean that bull runs are unlikely to extend in similar patterns to those seen back in 2017, while bear runs may well become extended.
When considering the current extended bearish trend, formed back at early May’s swing hi $9,999, it doesn’t bode well for Bitcoin and the broader cryptomarket. After all, it’s still hard earned cash that goes into these coins and the harder it is to earn, the less likely it is to find its way to Bitcoin and the clan.
In spite of the day’s loss, Bitcoin’s dominance continued to ease back, sitting at 53.1% at the time of writing, with Bitcoin’s previous status as a crypto safe haven seeming to be lost for now, Bitcoin losses akin to the broader market.
There was nothing particularly negative on the crypto news front to drive the reversal, with even Bitcoin Cash ABC seeing red on the day.
With the end of the year in sight, the 2019 price forecasts are hitting the wires and, if this year is anything to go by, it could be a tumultuous year next year, particularly if the global financial market meltdown continues and the world economy implodes at the hands of President Trump.At the time of writing, Bitcoin was down 0.77% to $3,945.5, Friday’s reversal continuing into the early hours of this morning, a start of a day morning high $4,009.00 and morning low $3,942.0 leaving the day’s major support and resistance levels untested.
For the day ahead, a move through the morning high to $4,060 levels would signal a resumption of the week’s upward trend, to bring $4,100 levels and the first major resistance level at $4,216.67 into play before any pullback, any upside likely to be capped at Friday’s high $4,300 on the day.
Failure to move back through to $4,000 levels could see Bitcoin pullback deeper into the red later in the day, a fall through the morning low $3,942.0 bringing the day’s first major support level at $3,818.67 into play, with $3,700 levels likely to be touched before any recovery, the day’s second major support level at $3,661.33 unlikely to be tested.
The only good news is that the global equity markets are closed for the weekend, giving the bulls a chance at closing out the week on a high note.