Following a broadly bearish session on Tuesday, it’s been a broadly bullish morning for Bitcoin and the broader market.
At the time of writing, Bitcoin, BTC to USD, was up by 3.91% to $42,340.0.
A mixed start to the day saw Bitcoin fall to an early morning low $40,601.0 before finding support.
Steering clear of the first major support level at $39,076, Bitcoin rose to a late morning high $42,744.0.
In spite of the recovery, Bitcoin fell well short of the first major resistance level at $43,023.
The Rest of the Pack
It has also been a mixed morning for the broader crypto market.
Through the morning, Crypto.com Coin was down by 4.49% to buck the morning trend.
It’s been a relatively bullish morning for the rest of the majors, however.
Through the early hours, the crypto total market cap fell to an early morning low $1,809bn before rising to a high $1,908bn. At the time of writing, the total market cap stood at $1,899bn.
Bitcoin’s dominance rose to an early morning high 42.59% before falling to a low 42.03%. At the time of writing, Bitcoin’s dominance stood at 42.02%.
For the Afternoon Ahead
Bitcoin would need to avoid a fall back through the 38.2% FIB of $41,592 and the $41,350 pivot to bring the first major resistance level at $43,022 into play.
Support from the broader market will be needed, however, for Bitcoin to break out from the morning high $42,744.0.
Barring a broad-based crypto rebound, the first major resistance level would likely cap any upside.
In the event of an extended rally through the afternoon, Bitcoin could test resistance at $45,000 before any pullback. The second major resistance level sits at $45,297.
A fall back through the 38.2% FIB of $41,592 and the $41,350 pivot would bring the first major support level at $39,076 into play.
Barring an extended sell-off through the afternoon, however, Bitcoin should avoid sub-$39,000 support levels. The second major support level sits at $37,403.
Looking beyond the support and resistance levels, we saw the 50 EMA pullback from the 100 and the 200 EMAs through the morning.
We also saw the 100 EMA pullback from the 200 EMA, also a bearish signal.
Through the 2nd half of the day, a flattening of the 50 EMA on the 100 and 200 EMAs would provide support.
Key through the late morning and early afternoon would be to avoid a fall back through the day’s pivot to $41,350 to support Bitcoin and the broader market.
This article was originally posted on FX Empire