12-Hour Analysis:
Big Picture: Over the weekend, BTC remained range bound. As we enter a new week, expecting price to take onto one of the zones. The sideways consolidation indicates that prices are contained within an equilibrium box unless one of the sides decides to break it. 37000 is still working as a major support, while 44-45k is still acting as a strong resistance. The 12-Hour Based MA-200, on the other hand, is providing some fascinating data and might ideally offer a much clearer picture of the trend. This MA has been quite responsive to the trend. We saw a negative trend when price fell and traded below this moving average, and a bullish trend when this MA was turned into a support. However, we are currently trading below this moving average.
On the Upside, Around 39650 is the initial level of resistance. The next wave of resistance is found at 40500-40850. However, if price can successfully break through these barriers, we can expect the upside to go towards 41400, then 42600, and finally into the crucial zone of 44400-45400. It has been said several times that this level is holding pricing back from breaking out towards 48-52k range. Furthermore, the Daily EMA-200 has now dropped to 44950. Hence breaking above this would turn the tides in favor of bulls.
On the Downside day’s initial support is seen at 38400, followed by 38100. One thing to keep in mind is that the 3-Day MA-200 is still very near to current levels, and price should avoid testing it again since it may lose its power. This MA is presently around 37870 and continues to guard the downside. Any three-day close below this MA, or a single day close below 37200, will be regarded a negative closing, and the will eventually open downside towards 35500 followed by 34000, and eventually Range Lows.
