4-Hour Analysis:
Big Picture: BTC declined dramatically yesterday, however there were warnings that this could be a false move unless further confirmation in the form of a rejection is observed. Later on, BTC smashed cleanly through the re-test levels, triggering panic short-coverings by late sellers, pushing the price to as high as 41,270 in a brief span of time. Sustaining over 40,600 is expected to open the door to 42,000-42,300 as the next target.
On the Upside, The day’s initial resistance is evident near 41200. At this level, there are a number of significant hurdles that have been limiting the upside. At this level, the EMA-50 4-hourly is located, followed by a descending channel trendline. These are both very strong resistances that must be overcome in order for the price to continue to rise. A successful break over the EMA-50 is likely to push the price up towards 42,300, followed by 43,950-44050.
On the Downside initial support for the day is indicated at the level of 40,550. This level has been serving as a solid support in recent hours, but losing it will send BTC to lower support levels at 39,650, followed by 39,250. However, a break below these supports will once again open the door to 38,500, followed by 37,000 levels.
