Big Picture: The bulls earlier managed to reach the Range-Top levels and then opened the door for a significant quick profit-taking round. This has been the largest profit-taking wave on Bitcoin, with prices falling by about 15% in only a few days. The higher time-frame candle has currently taken the shape of a possible rejection, which is expected to cause extra volatility in the coming sessions and may pave the way for a further corrective cycle.
On the Upside price is expected to face first resistance at 43,200, followed by 43,900 and 44,500 levels. If bulls are to recover and see a resumption of momentum towards the positive side, price must establish a foothold above 44,500. A 3-Day candle closing over 44,500 opens the upside back towards the 45,920 mark, with space for further upside.
On the Downside price is now at the trendlines supporting levels. The trendline continues to hold the trend, as it has for the past few weeks. These trendline supports are now positioned at 41,400 to 41,050 levels. These will be critical support levels for the bulls to maintain. Meanwhile, just below these supports, Bitcoin has the midpoint of the current prevailing range around 40,600, with additional support from the EMA-24. These support levels are vital and any breach below them sends Bitcoin into another downward correction.