Big Picture: A powerful surge started as Bitcoin began to gain momentum above the triangle pattern’s breakout levels. This surge was mostly driven by aggressive panic short-coverings and fresh buying. The volumes in the last couple of hours have increased dramatically which has assisted the price in its surge. However, similar volumes must continue if bulls are to forcefully initiate an even stronger short-squeeze or recovery.
On the Upside the session’s main resistance will be at 41,450, which is the resistance level currently price is approaching. It is advisable to use extra caution in this area as this level may potentially draw extremely aggressive profit-taking. In the meanwhile, 41,855 and 42,400 could prove to be the next targets on the upside if bulls can control the trend. EMA-200 is now being challenged for a break higher.
On the Downside it is expected that the hourly EMA-200 will move into the primary support level. The current position of this EMA-200 is 40,755 level. The next intra-day supports below this level are at 40,600 and 40,350, while the breakout levels are between 40,240 and 40,090. Bitcoin is probably unlikely to see any further selling as long as this zone is in place.