Big Picture: Bulls have been experiencing a number of problems since testing the Range-High Levels. The range highs, along with channel resistance, were too powerful for the bulls to continue without a significant pullback. Bitcoin is currently showing indications of pressure, with the price strongly challenging the EMA-50 for the first time since October 16th. Moving forward, some unexpected swings are unavoidable, but aggressive risk management is now recommended.
On the Upside the major resistance for the session is at 41,450. Reclaiming this level could assist the bulls to return towards 42,240 and 42,580. Meanwhile, bulls should maintain the 41,450 level for the next few hours, as doing so could negate any new selling waves and force some aggressive short-covering. Meanwhile, if price rises over 42,580, the next wave of resistance will be around 43,050, then 43,200, and 43,455.
On the Downside after losing the support level of 41,950, Bitcoin began a new selling wave, dragging it lower towards 41,080 and 40,620, which is the midpoints. It was stated in the prior analysis that 41,950’s trendline supports would be critical support levels. Now for the session, the mid-range support level of 40,620 has provided a solid rebound. However, Bitcoin must recapture Monday’s bottom to prevent additional selling into the mid-range. Losing Mid-Range support might potentially open the door to fresh selling.