1-Day Analysis:
Big Picture: Another converging triangle has been formed by BTC. The structure is converging, therefore it’s getting choppy. There are two outcomes from the break of structure:
- Breakout: Sustaining above 46,700-46,800 will trigger a breakout, leading for a move towards to 48,000, then 50,800.
- Breakdown: Price sustaining below 44,000 will result in a breakdown of the structure with 42,000 as initial downside followed by 40,500.
On Upside, 45,700 is seen as the initial resistance for the day. Price needs to break and sustain above the 46,700-46,800 mark in-order to end this consolidation and pave path towards 49,250 followed by 50,800 next.
On the Downside throughout the range, there are a number of strong supports. At 44,850, there is strong intra-day support. The EMA-200, which is based on a daily basis, protects this threshold. No session has closed below this level since this EMA was regained. Price has now tested this twice and has found a lot of support. However, a structural breakdown below 44,000 will push the price below 42,000, then 40,500.
