8-Hour Analysis:
Big Picture: BTC continues to plummet as bearish sentiment returns to the market. As we lose important levels along the way, things have started to seem skeptical once more. A key level in the form of trendline support is approaching. If BTC falls below this level, it will be exposed to lower support levels at 34,400-33000. Bullish triggers are currently lacking in the market; but, if BTC can regain and sustain above the 42,000 level, sentiment could flip once more.
On Upside multiple new resistances have been developed. However, there is initial intraday resistance in the 38,700-38,880 range. Following that, another wave of resistance can be seen around 39,400, followed by 39,880. This level has capped the upside throughout the weekend, and BTC must break and hold above it to counteract the selling pressure and return to neutral territory. If this level is successfully maintained, the upside is anticipated to widen towards 41,000, then 42,200.
On Downside the bulls have suffered a major setback after losing the 3-Day MA-200. Since early January, this specific MA had been limiting all falls. BTC is currently exposed in the 37,550 area, followed by the 36,290 area. Short-covering is expected to be triggered by these supports, but new buying is still remains a question. However, fall below 36,390 will be another setback, prompting another selling spree towards 34,400, then 33,000.
