Big Picture: Bitcoin has twice had an outstanding reaction from the vital support levels positioned below. Price was able to channel higher both times, but failed to maintain momentum and push prices higher into the next resistances above. Meanwhile, there is considerable buying demand from the supporting level, and comparable profit-taking pressure is forming on any offer of strength. This will likely keep volatility high.
On the Upside price was able to overcome both intra-day barriers and return to recent highs. However, as the price approached the recent highs, rapid profit-taking kicked in, limiting the bullish momentum. However, the price has repeatedly tested the 38,300 to 38,400 zone since yesterday, but has got rejection each time. Strength over 38,400 could clear up some additional room higher towards 38,800, followed by 39,250, although profit-taking on strength may continue.
On the Downside price has claimed support levels ranging from 37,700 to 37,560, which are expected to be significant support levels for the session. However, primary support for the session is at 38,000 level. If bulls can convert this level into support, the odds of a move higher increases. However, break below the intraday support level of 37,560 would be required to build onto some pressure for additional decline.