The crypto market has a mixed picture on Wednesday. Bitcoin’s price fell on Tuesday, extending losses to $ 3 360. However, the coin managed to recover and hold over $ 3400 at the time of my writing.
Now the key question for traders is whether the $ 3 500 level is Bitcoin’s new “sand line”?
If the price can hold more than $ 4,470, the bulls should test $ 3,500 in a short time. A clear break over $ 3,550 will certainly ease the pressure … Although the mood of the whole market is likely to improve significantly, keep in mind that investors may take a more cautious position after three consecutive days of red. We can expect Bitcoin to go back downside from the $ 3,600 resistance to the $ 3 557.5 (the high on Monday).
Failure to keep above $ 3 470 may return Bitcoin back to red territory, with a fall to yesterday’s bottom at $ 3,360. Next support is $ 3,300, which must be “visited” by the bears before we expect any recovery.
As for the rest of the crypto currencies in the top 10, not everything was doomed and grim, as EOS and Tron managed to keep the upside trend in the second half of Tuesday.
TRON partly managed to cover the losses from the fierce sell-off on Monday caused by the disappointing BitTorrent sale (BTT). Both TRON and Binance reported that the issuance had been sold in less than 15 minutes, with a total amount of more than $ 7 million. However, the crypto community was outraged by bad user experience and persistent technical problems that prevented investors from participating in the sale.
TRX/USD bulls now focus on the area above $ 0.02800. A convincing move above this level will improve short-term technical outlook and create favorable conditions for longer recovery. We have an important resistance at $ 0.0300. This area actually limits the increase in January.
On the downside, the initial support is $ 0.02700, followed by the current bottom of $ 0.02672. A clear break below the last one could cause sales to the $ 0.02517 – 0.02460 zone, which served as resistance in November 2017. Meanwhile, a consistent move below $ 0.02290 (50% Fibo retracement for the recent rally) should signal the end of bull domination.
With regard to the news front, a positive for Bitcoin and wider market may be the news for Fidelity, who wants to place custody services for Bitcoin before the end of the first quarter. In the future, this should also be followed by services for the wider market.
Choosing the right moment could be more beneficial as the SEC is currently planning to announce the outcome of the review of the remaining 8 Bitcoin ETF applications. But after the government shutdown, it will not be surprising if there is further delay of the decision. VanEck’s withdrawal could be the right decision if Fidelity fulfills its promise and markets avoid another theft or fall victim to more price manipulation.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.