After a bearish week, Bitcoin and the majors were back in the red at the start of the week.
At the time of writing, Bitcoin, BTC to USD, was down by 1.13% to $31,460.0. A mixed start to the day saw Bitcoin rise to an early morning high $31,928.0 before hitting reverse.
Falling short of the first major resistance level at $31,970, Bitcoin slid to a late morning intraday low $31,407.0.
In spite of the reversal, Bitcoin managed to avoid the first major support level at $31,180 through the morning session.
The Rest of the Pack
It has also been a bearish morning for the broader crypto market.
Through the morning, Bitcoin Cash SV slid by 5.50% to lead the way down.
Binance Coin (-1.49%), Chainlink (-1.59%), Crypto.com Coin (-2.24%), Polkadot (-1.80%), and Ripple’s XRP (-1.73%) also struggled.
Cardano’s ADA (-1.00%), Ethereum (-0.72%), and Litecoin (-0.91%) saw more modest losses, however.
Through the early hours, the crypto total market rose to an early morning high $1,289 before falling to a low $1,271bn. At the time of writing, the total market cap stood at $1,271bn.
Bitcoin’s dominance fell to an early low 46.37% before rising to a high 46.55%. At the time of writing, Bitcoin’s dominance stood at 46.39%.
For the Afternoon Ahead
Bitcoin would need to move back through the $31,795 pivot to bring the first major resistance level at $32,478 into play.
Support from the broader market would be needed, however, for Bitcoin to break out from this morning’s high $31,928.0 and through to $32,000 levels.
Barring a broad-based crypto rebound, the first major resistance level and Sunday’s high $32,453 would likely cap any upside.
In the event of an extended crypto rally, Bitcoin could test resistance at $33,000 levels. The second major resistance level sits at $33,137.
Failure to move back through the $31,795 pivot would bring the first major support level at $31,136 back into play.
Barring an extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$30,000 support levels.
The second major support level at $30,453 should continue to limit the downside.
Looking beyond the support and resistance levels, we saw the 50 EMA pull further back from the 100 and 200 EMAs through the late morning, supporting the Bitcoin reversal.
We also saw the 100 EMA pull further back from the 200 EMA adding pressure on Bitcoin and the bulls.
A further pullback of the 50 EMA from the 100 EMA and the 200 EMA this afternoon would bring the support levels back into play.
Key going into the afternoon will be for Bitcoin to move back through the pivot to $31,795.
Having been stuck in the ranges in recent days, a lack of support could bring the sub-$31,000 levels into play. An extended sell-off and Bitcoin would likely return to sub-$30,000 for the first time since late June.
This article was originally posted on FX Empire
