After a bullish week for the crypto majors last week, it was a bearish start to the week this morning.
At the time of writing, Bitcoin, BTC to USD, was down by 3.08% to $34,190.0. A bearish start to the day saw Bitcoin fall from an early morning high $35,280.0 to a mid-morning current day low $34,050.0.
Bitcoin fell through the first major support level at $34,451 before steading.
Key through the early hours was avoiding a return to sub-$34,000 levels.
The Rest of the Pack
It’s been a bearish morning for the broader crypto market.
At the time of writing, Crypto.com Coin was down by 4.38% to lead the way down.
Bitcoin Cash SV (-1.78%) and Polkadot (-0.31%) saw relatively modest losses, however.
Through the early hours, the crypto total market fell from an early morning high $1,449bn to a low $1,404bn. At the time of writing, the total market cap stood at $1,411bn.
Bitcoin’s dominance rose to an early high 45.66% before falling to a low 45.39%. At the time of writing, Bitcoin’s dominance stood at 45.44%.
For the Afternoon Ahead
Bitcoin would need to move back through the $35,201 pivot to bring the first major resistance level at $36,025 into play.
Support from the broader market would be needed, however, for Bitcoin to break back through the first major support level at $34,451.
Barring a broad-based crypto rebound, resistance at $35,000 would likely leave Bitcoin short of the first major resistance level would likely cap any upside.
In the event of an extended crypto rally, Bitcoin could test resistance at $37,000 levels. The second major resistance level sits at $36,775.
Failure to move back through the $35,201 pivot would bring the second major support level at $33,627 into play.
Barring an extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$33,000 support levels. The third major support level sits at $32,053.
Looking beyond the support and resistance levels, we saw the 50 EMA narrow on the 100 and the 200 EMA this morning. While there are no signs of a bearish cross, the narrowing has tested support for Bitcoin through the morning.
A further narrowing of the 50 EMA on the 100 EMA and the 200 EMA would be a bigger drag on Bitcoin and the broader market.
Key going into the afternoon will be to move back through to $35,000 levels to bring $36,000 levels and major resistance levels into play.
This article was originally posted on FX Empire