Market Analysis: Bitcoin (BTC) Deflected Downwards from $4,000 Resistance Level, Crypto Market in the Red

March 21, 2019 / by Zach Gruskin

Bitcoin (BTC) was slowly climbing upwards since March 19 and made an attempt at breaking through the $4,000 resistance level today. During the morning, Bitcoin (BTC) reached as high as $4,055, before being deflected downward and to $3,920.

Since then, Bitcoin (BTC) has recovered a bit and is currently trading near $3,970 and will perhaps soon make another attempt at testing the $4,000 resistance level.

The $4,000 resistance level has been stubborn since first being tested on March 15, the same day Bitcoin (BTC) finally broke $3,900. Trading data indicates that the resistance level stretches from at least $4,000 to $4,050, so Bitcoin (BTC) will have to climb to near $4,100 before it can be said that the resistance level is broken.

If Bitcoin (BTC) can break through $4,000, it will then have to contend with the long-term resistance level of $4,200. If the $4,200 resistance level is broken, it would pave the way for a true crypto bull run.

Meanwhile, support levels are apparent at $3,900 and $3,700, with the long-term support level at $3,100. The $3,700 support level is the most important to watch since, if this breaks, a return to bear market lows may possible.

Bear sentiment returned to the crypto market today due to Bitcoin’s failure at breaking the $4,000 level, and most major cryptocurrencies are the red. Ethereum (ETH) is down 2.2 percent, Ripple (XRP) is down 2.1 percent, Litecoin (LTC) is down 2.3 percent, EOS is down 2.3 percent, Bitcoin Cash (BCH) is down 3.4 percent, Binance Coin (BNB) is down 3.4 percent, Stellar (XLM) is down 3.7 percent, Tron (TRX) is down 2.5 percent, Cardano (ADA) is down 0.5 percent, Bitcoin SV (BSV) is down 1.6 percent, Monero (XMR) is down 4 percent, Dash (DASH) is down 2 percent, and Dogecoin (DOGE) is down 0.8 percent.

The only major cryptocurrency up today is IOTA (MIOTA), with a gain of 2.2 percent.

The total crypto market cap rose from $141 billion to $142 billion in the morning before Bitcoin (BTC) plunged. Then the total crypto market cap dropped to $138 billion. Since then the total crypto market cap has recovered some of its losses and now sits near $139 billion.

Today’s crypto market cap is about 40 percent above the bear market low of $100 billion. However, today’s sudden return of negative market sentiment shows that the bear market continues.