Bitcoin slid by 2.75% on Tuesday. Partially reversing a 4.1% gain from Monday, Bitcoin ended the day at $9,095.0.
A relatively choppy day saw Bitcoin slide from a start of a day intraday high $9,376.8 to a late intraday low $8,945.0.
Falling well short of the major resistance levels, Bitcoin fell through the first major support level at $9,063.47.
Support from the broader market led to a final hour recovery to $9,000 levels.
The Tuesday sell-off brought to an end a run of 6 consecutive days in the green.
The Rest of the Pack
Across the rest of the top 10 cryptos, it was another mixed bag for the major cryptos.
Binance Coin and Litecoin bucked the trend on the day. While Litecoin eked out a 0.67% gain, Binance Coin rose by 1.45%. The rest of the pack saw red.
Leading the way down was Stellar’s Lumen, which slid by 5.48%. EOS (-5.13%), Ripple’s XRP (-4.83%) and Bitcoin Cash ABC (-4.48%) were not far behind on the day.
The reversal on the day came in spite of a lack of news events, with the Bitcoin bulls continuing to grab the headlines.
News of Facebook’s cryptocurrency Libra also did the rounds on the day, but would unlikely have had any material influence. The jury is still out on whether Facebook will be able to successfully launch a cryptocurrency and compete with the likes of Bitcoin.
In spite of the Tuesday reversal, the total crypto market cap avoided a pullback to sub-$280bn levels. At the time of writing, the total crypto market cap stood at $283.6bn.
Trading volumes eased back, however, falling back from $75bn levels on Sunday to sub-$60bn levels.
At the time of writing, Bitcoin was up by 0.69% to $9,157.5. A bullish start to the day saw Bitcoin rise from an early morning low $9,062.0 to a high $9,198.0.
In spite of the early moves, Bitcoin left the major support and resistance levels untested.
Elsewhere, Bitcoin Cash SV and Litecoin bucked the trend early, with declines of $1.24% and 0.58% respectively.
Leading the pack at the time of writing was Bitcoin. Binance Coin was close behind, up by 0.53%.
For the Day Ahead
Bitcoin would need to avoid a pullback to sub-$9,140 levels through the day to support a move back through to $9,300 levels.
Support from the broader market would be needed, however, for Bitcoin to break through the first major resistance level at $9,332.87.
In the event of a broad-based crypto rally, Bitcoin could take a run at Sunday’s high $9,490 and $9,500 levels before any pullback.
Failure to steer clear of sub-$9,140 levels could see Bitcoin hit reverse. A fall back through the morning low $9,062.0 would bring sub-$9,000 levels into play.
A broad-based crypto sell-off would likely see Bitcoin test the first major support level at $8,901.07 before any recovery.
Barring a crypto meltdown, however, Bitcoin should steer clear of sub-$8,900 levels on the day.
For those looking to see if there’s any correlation between the cryptos and monetary policy, today could be the day.
With the FED expected to signal monetary policy easing later in the year will a more dovish FED deliver a boost to the majors?
This article was originally posted on FX Empire
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