12-Hour Analysis:
Big Picture: The sellers’ inability to generate sustained pressure below 26,600 has resulted in a surprising rebound by the bulls. As selling gained intensity, a break of 26,600 was required to open the way for lower aims; however, this did not occur, creating an opportunity for bulls to fight back, which they have done admirably up to this point. If current bullish momentum continues, a re-test of the congestion zone is expected, and buyers could be able to break through this level this time.
On the Upside Bitcoin is expected to re-test the congestion zone at 28,750 to 29,075 levels. During the prior several tests, price was always rejected at this level. If bulls fail to break through this resistance level, the upside will be confined to this level. But, if they win the contest, they would most likely target 29,800 to 30,000 levels initially, with opportunity for greater gains.
On the Downside the breach below the converging triangle was a deception and most likely a manipulation phase. The 26,600 level of support proved to be too powerful for sellers to overcome. Initial support for the session is being established at the 28,200 level. If this support begins to provide supportive assistance, it will be highly compelling for the bulls. Below this level, however, the next sets of supports are at 27,750, followed by 27,400.
