12-Hour Analysis:
Big Picture: The volatility indicators indicate that Bitcoin’s volatility has decreased dramatically in the last few trading sessions. For Bitcoin to break out of its consolidation phase and re-enter a trending phase, volatility must rise. So far, following several rejections from the congestion zone, price may initially fall to re-test a few key levels while also re-strengthening buyers.
On the Upside the session’s opening resistances are observed at 28,050, followed by 28,450. Price has a congestion zone between 28,750 and 29,075 levels above opening resistances. This zone has historic importance and has resisted several breakout efforts in recent trading sessions. A break above this zone is still essential for Bitcoin to reach higher levels.
On the Downside the initial supports at 27,880 to 27,650 are now being tested on a frequent manner. Price has held this level for last several hours. Additionally, the EMA-32 level has now reached this region. This zone remains a significant support for Bitcoin, but given several failures on the upside, price could possibly overwhelm this level and re-test lower supports. Losing these supports exposes price next towards 27,400 to 27,200 levels. This is another strong supportive zone that could cause aggressive short-covering and possibly some intraday fresh buying. Going below this level, on the other hand, may escalate the situation.
