12-Hour Analysis:
Big Picture: Price hits the psychological level of 30,000 for the first time since August 9th, 2023. As the price rose over the 28,850 barrier, a vicious wave of short squeeze occurred. The price increase lasted barely a couple of minutes, confirming that the upward push was mostly driven by short-coverings. Moving forward, the pair may remain volatile in the next days, with short-term movements more likely.
On the Upside Bitcoin will be restricted between the levels of 28,850 and 29,020. This will be a significant challenge for the session. If price can hold some momentum over 29,020, the upside could then expand towards 29,400, followed by 29,800 to 30,000 levels. Profit-taking on strength, on the other hand, is still the preferred approach.
On the Downside Price is finding good support between 28,180 to 28,040. As the price re-tested this range, there was a strong reaction with higher volumes, indicating that buyers took advantage of the drop. Furthermore, even if price retests this level, a similar reaction is possible, although sustaining this recent support addition would favor the bulls in their pursuit of higher levels. Meanwhile, if price breaks through this immediate support zone, the decline might extend deeper towards 27,650, with possibility for 27,260 next.
