12-Hour Analysis:
Big Picture: BTC is being held back by a number of significant resistances. One of these is the 12-Hourly MA, which we described earlier. For BTC, this MA has been a primary trend driver. This level is now at 42340. When the price came into contact with this MA during the weekend, we saw profit-taking. Going forward, this region will be a major hurdle for price, as in addition to Moving Average we also have a major falling trendline resistance. Several confluences indicate that a break above this can trigger a sharp move to the upside, while a rejection would re-open lower supports.
On Upside The initial resistance level is 42180, with the major resistance level at 42340. This level will be crucial for the price’s future direction, as well as a deciding point between an extended relief rally or a rejection point. If there is to be more upside, this level must be broken. Intraday profit-taking will occur if this is not broken. However, a break above this will open 44250, next 45500, and a break over this will open significant upside to 48000, then 51950.
On the Downside 41200 level exists a strong support, followed by 40500. Both are great intra-day supports. However, breaking below these levels will open 39650, followed by 38000. Below 38000, we have a large liquidity pool between 37550 and 36950 that could operate as a price objective. However, in order to negate this, a breakthrough over 45,550 is required.
