Big Picture: Over the weekend, price remained mostly in a consolidation mode, with little price activity. This is now forming back-to-back possible bullish patterns. Initially, an inverted head and shoulder formation was observed, which is presently being followed in the short term by a probable converging triangle pattern that may be a continuation pattern. Bulls are presently in a favorable position; nevertheless, if bulls want to move higher, they should quickly retake dominance.
On the Upside price is monitoring intra-day resistance between 43,225 to 43,300. This area remained almost untested throughout the weekend, and there are early indications that price may challenge it in the first session of the week. Breakthrough above this zone allows the upside to push back into the 43,545 to 43,700 levels, which must be broken for price to see its pattern breakout and a potential re-test into 45,170, possibly even back towards the earlier highs as well as the 61.8% Fibonacci retracement.
On the Downside Bitcoin’s S/R levels range from 42,600 to 42,450. This specific zone has effectively protected price from any significant tests over the weekend and the previous several sessions. The next supporting levels are 41,855 and 41,455, followed by the mid-range level of 40,620. Sellers must exert significant pressure to get the price this low, as the price continues to experience extremely strong horizontal and dynamic supports.