Big Picture: It was mentioned in the previous update that bullish sentiment was fading away and had to make a firm break above 45500 in-order to re-ignite the bullish sentiment. However Bulls failed to even manage a convincing closing above 44k that led to a price break-down. Going forward BTC is now standing at 3-D significant support pivot point between 40400-39655 levels. So expecting some partial upside towards intra-day levels. In-case this level is lost then downside will be exposed towards 38800-38000. Furthermore expecting choppy and indecisive price action for the day.
On Upside first strong level of resistance will be observed at 41300 level followed by second intra-day resistance around 41950. Ideally price should consolidate between these levels for a few days before any further aggressive impulse. However stronghold above 41950 leads towards 42800-43200 initially followed by 44k once more.
On the Downside primary level of support for the day is found at 40400. This is a major support level that needs to be protected on daily close basis. Closing below this is likely to once again open 39650. This is where short-coverings are likely to be seen, if not then be ready for 38800-38000.