1-Day Analysis:
Big Picture: The bulls were able to steadily build on the momentum as price rose to its highest level since August 17th. Bitcoin remained sideways for much of August and almost till the later stages of September, but the bulls were able to keep the price above the Range Lows despite consistent selling pressure. The bulls’ resilience at the support levels has now resulted in a strong rebound as they return towards the range Mid-Levels.
On the Upside as the price broke through the EMAs and the falling trendline resistance, there was a significant reaction, resulting in a price gain of about 5%. Price currently sits in the mid-levels of the range of 28,430. This is the session’s opening resistance level, followed by intraday resistances at 28,860 and 29,525. Bulls must now establish a dominance above the mid-levels in order to open up the upper range. Any short-term deviation above this level could cause aggressive profit-taking.
On the Downside price is expected to find some support between 28,040 to 27,940 levels. As of now, this level need more confirmation before it can be considered as a significant support level. As a result, the reaction around this range will indicate if the support level is strong or simply partial. If Bitcoin fails to hold this level, the price may fall towards the 27,350 to 27,300 range. This supportive zone is likely to provide significant support towards the price and may also result in a few substantial short-coverings.
