BTC-“Consolidation Favors Bulls”

4-Hour Analysis:

Big Picture: A strong price surge was seen the moment BTC started to gain acceptance above the range top. Price has initiated a breakout and is currently holding strong. Ideally a re-test followed by an equally strong bounce here of the breakout level would act as an icing on the top. This would serve as a confirmation and would allow an even smoother rally to ride onto. Price is now expected to rise as long as it maintains the breakout levels of 30,850-30,600.

On the Upside Bitcoin experienced a powerful breakthrough. This big advance, however, is presently encountering resistance at the 31,850 level. According to previous reports, this would be the first place where price would approach as a result of the 30,850 breakthrough. The next significant resistance levels are 31,850 followed by 4-hour based EMA-200 at 32,300. Price would need to break through these levels to maintain its strong momentum and pursue the following levels of 32,850, 33,700, and finally 35,000.

On the Downside the prior range top is now expected to function as significant support. However, it is presently an untested support, but there is a good likelihood that this level will function as a firm support today. Following that, as long as this level holds, price is expected to continue bullish in the near term; however, failure to hold this level may endanger momentum and result in a fakeout. Below 30,600, the next support level is 29,900, then 29,000, and finally range lows.