After a bullish day for the crypto majors on Thursday, it has been a bearish morning for Bitcoin and the broader crypto market this morning.
At the time of writing, Bitcoin, BTC to USD, was down by 3.47% to $38,646.8.
A mixed start to the day saw Bitcoin rise to an early morning high $40,248.0 before hitting reverse.
Falling short of the first major resistance level at $40,682, Bitcoin slid to a late morning intraday low $38,343.0.
Bitcoin fell through the first major support level at $39,331 and the second major support level at $38,626.
Steering clear of sub-$38,000 levels, Bitcoin moved back through the 2nd major support level going into the afternoon.
The Rest of the Pack
It has been a bearish morning for the broader crypto market.
Through the early hours, the crypto total market rose to an early morning high $1,569bn before falling to a low $1,495bn. At the time of writing, the total market cap stood at $1,509bn.
Bitcoin’s dominance rose to an early high 48.47% before falling to a low 48.07%. At the time of writing, Bitcoin’s dominance stood at 48.12%.
For the Afternoon Ahead
Bitcoin would need to move back through the first major support level and the $39,977 pivot to bring the first major resistance level at $40,682 into play.
Support from the broader market would be needed, however, for Bitcoin to break back through to $40,000 levels.
Barring an extended crypto rally through the afternoon, the first major resistance level at $40,682 would likely limit any upside.
In the event of a breakout, however, Bitcoin should target the 38.2% FIB of $41,592 before any pullback. The second major resistance level sits at $41,328.
Failure to move back through the first major support level at $39,331 pivot would bring the second major support level at $38,626 back into play.
Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$38,000 levels, however. The third major support level sits at $37,275.
Looking beyond the support and resistance levels, we saw the 50 EMA narrow on the 100 and 200 EMAs this morning. This supported the downside through the morning.
A further narrowing of the 50 on 100 and 200 EMAs this afternoon would bring sub-$38,000 levels into play.
Key going into the afternoon will be for Bitcoin to avoid a fall back through the morning low $38,343.0 to sub-$38,000 levels.
This article was originally posted on FX Empire