FX Empire: Support from broader market needed for BTC return to $50K

Bitcoin gained 4.73% yesterday, reversing Friday’s slight losses and ending the day just below $50,000. A mixed start to the session saw the flagship crypto drop to a low of $46,872 before making a divergent move. It reached a high of $49,522, steering clear of the first major support level at $46,102, FX Empire reported.

Bitcoin closed the day around $49,400 after overcoming the first major resistance level at $49,263. The close-term bullish trend was sustained despite the latest dropdown to $41,000 levels. Bitcoin needs a sustained fall through $28,814 (62% FIB) to form a near-term bearish trend.

Altcoin movements

The trend was bullish for the rest of the top coins by market cap. Cardano was the biggest winner with gains of 11.73%. There was strong support for Chainlink (+7.44%) and Litecoin (+6.44%). Bitcoin Cash SV (+4.53%), Binance Coin (+2.04%), Crypto.com Coin (+0.91%), Polkadot (+0.27%), Ethereum (+4.79%), and Ripple’s XRP (+4.84%) were just behind the front runners.

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Over the past week, the total crypto market cap peaked at $2.4 billion on Tuesday before dropping to $2.1 billion on Saturday. It was around $2.2 billion at the time of writing.

On Monday, Bitcoin’s market dominance reached 41.9% before dropped down to a low of under 40% on Thursday. The biggest coin by market cap’s dominance stood at 41.49% at the time of writing.

Sunday morning

Bitcoin is currently changing hands for around $49,300. A mixed start to the day saw it drop to this low before rising to a high of $49,721. Then, it dropped again. Bitcoin left the major support and resistance levels untested early on.

For the altcoins, Sunday saw a mixed start. Chainlink and Polkadot registered slight losses of -0.14% resp. -0.23%. For the other majors, it was a bullish start. Cardano’s ADA gained just under 2% to lead the way.

Sunday outlook

Bitcoin needs support from the broader market to break back through $50,000. To bring the first major resistance level at $50,340 into play, it needs to avoid the $48,600 pivot. Unless the whole market rallies, it’s most likely that the first major resistance level will cap the upside. If the market goes bullish despite expectations, Bitcoin could test $53,600 before any dropdown. According to FX Empire, the second major resistance level is at just over $51,000.