After a mixed day for the crypto majors on Monday, it has been a bearish morning for Bitcoin and the broader crypto market.
At the time of writing, Bitcoin, BTC to USD, was down by 1.77% to $38,456.0.
A mixed start to the day saw Bitcoin rise to an early morning high $39,781.0 before hitting reverse.
Falling short of the first major resistance level at $40,160, Bitcoin slid to a mid-morning intraday low $38,020.0.
Bitcoin fell through the first major support level at $38,427 to test support at $38,000 before a move back through to $38,600 levels.
The Rest of the Pack
It has been a bearish morning for the broader crypto market.
Through the early hours, the crypto total market rose to an early morning high $1,606bn before falling to a low $1,521bn. At the time of writing, the total market cap stood at $1,535bn.
Bitcoin’s dominance fell to an early low 46.64% before rising to a high 47.13%. At the time of writing, Bitcoin’s dominance stood at 47.02%.
For the Afternoon Ahead
Bitcoin would need to move back through the $39,438 pivot to bring the first major resistance level at $40,160 into play.
Support from the broader market would be needed, however, for Bitcoin to break back through to $40,000 levels.
Barring an extended crypto rally through the afternoon, the first major resistance level and Monday’s high $40,449 would likely limit any upside.
In the event of a breakout, however, Bitcoin should target the 38.2% FIB of $41,592 before any pullback. The second major resistance level sits at $41,171.
Failure to move back through the $39,438 pivot would bring the first major support level at $38,427 back into play.
Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$38,000 levels, however. The second major support level sits at $37,705.
Looking beyond the support and resistance levels, we saw a bearish cross with the 50 EMA crossing through the 100 EMA this morning. We also saw the 50 EMA narrow on the 200 EMA this morning. This supported the downside through the morning.
A further narrowing of the 50 on the 200 EMA this afternoon would bring the first major support level back into play.
Sub-$38,000 levels would come into play should the 50 EMA cross through the 200 EMA later in the day.
Key going into the afternoon will be for Bitcoin to move back through the $39,438 pivot.
This article was originally posted on FX Empire