4-Hour Analysis:
Big Picture: Yesterday marked 50th day of this macro consolidation. Upon breakout such extensive consolidation lead towards much sustained and strong trends. Moving forward it is still expected that BTC is likely to extend the ranges in coming sessions and that we can expect higher volatility to come into market. We have a strong support between 38-37k which is also an area of interest. BTC closing below this level on Daily closing would be a very bearish sign. However intra-day liquidity grab cannot be ruled out. In range bound movements it’s better to play the ranges as long as they remain valid. And being close to a major support the bias supports buying unless proven otherwise. Expecting these levels to react and potentially open 40.5k followed by 42-44k once more in coming sessions.
On the Upside, because we are currently trading in a very narrow range, a lot stays the same, with the first level of resistance being 39650, followed by 39920.The second wave of resistance can be found around 40500 and 40850. However, if price can successfully break through these barriers, we can anticipate it to advance to 41400, then 42600, and eventually into the important zone of 44400-45400. This level, as has been stated multiple times, is preventing prices from breaking out into the 48-52k zone. In addition, the Daily EMA-200 has now fallen to 44920.
On the Downside Today, 38400 and 38100 limited additional declines, making them solid intraday supports. Loss of intraday supports exposes the crucial 3-Day MA-200 support, which is now at 37870. Any three-day close below this MA, or a single day close below 37200, will be considered a bearish closing, and the market will ultimately open lower towards 35500, then 34000, and then Range Lows.
