12-Hour Analysis:
Big Picture: Bulls came back with a bang and took out the range top to unleash the aggressive breakout. The breakout was sharp just as expected taking out 46850 as initial target and is on course towards higher levels. Keeping this in view new entrants shall not get carried away. The weekend move left behind a CME gap at 44,675-46,570. Price is expected to re-fill this gap, moreover this is the exact area where breakout based re-test can also be seen. BTC should limit the re-test at 44,000-43,750 region and head back up. Doing so would put 50,000 as next initial target followed by 51,950 and eventually 53,550.
On Upside, when profit-taking at 44,500-45,500 was successfully absorbed, BTC broke the range. Going forward, the bulls have started a hyper advance that has pushed indicators into severely overbought territory. As a result, partial profit-taking near the 47,600-48,000 level cannot be ruled out. These are also the initial intra-day resistances. These levels are strong enough to limit future gains to a certain extent. However, if the price rises above them, the next target will be 49,250, followed by the 50,000 mark.
On the Downside, Major resistances from the past are now likely to become major supports. Going forward, the 46,700 region will have early strong support, followed by 45,500. When these levels are tested, they are likely to attract potential buyers. In the event of an extended re-test, BTC can go to 44,500, next 43,750. These are the most important confluence support levels. This level also corresponds to the 12-hourly EMA-250, which has been a prominent trend driver for several years.
