Big Picture: The ETF controversy caused significant volatility in yesterday’s session. Bulls originally led the charge, pushing prices up around the 48,000 mark, but unfavorable news factors made it difficult for bulls to maintain their momentum, resulting in massive intra-day rounds of profit-taking. The volatility is predicted to remain, as Bitcoin’s price candle from yesterday resembled a possible spinning top formation.
On the Upside Bulls nearly reached the Range-Top level of 48,250. However, they remained just shy of the levels and saw some early profit-taking as a result of multiple resistances present above. The Range-Top levels coincide closely with the 61.8% Fibonacci retracement and channel resistances. This area is expected to put bulls under pressure, and it will take a lot of conviction for bulls to overcome it. These resistances range from 47,950 to 48,240 levels.
On the Downside a minor initial support level has emerged at 45,200. The breakout levels below serve as crucial support levels for Bitcoin. These ranges are found between 44,400 to 44,200 levels. Bulls will need to hold these levels solid to prevent any major selling occurrences. Losing this level could lead Bitcoin to lower supports in the mid-range of 42,500 and potentially lower.