1-Day Analysis:
Big Picture: Yesterday again remained to be aggressively bearish, where BTC broke the channel supports and tested the Higher Time-Frame range lows before bouncing. Currently a strong reaction is being seen which is likely as result of aggressive short-coverings on back of a major support level. However these coverings can continue a little further towards 33,235 followed by 34,350 and can eventually target the fresh CME gap at 35,950.
On Upside the first level of resistance is 32,000, followed by 32,750. The next level of resistance is expected to be 33,235, followed by 34,350. These thresholds are unlikely to be broken on the first attempt, making them extremely difficult for pricing to overcome. If BTC manages to break through this barrier, it will most likely target the CME Gap at 34,470-35,950.
On Downside price is attempting to create a support level at 31,200-31,000. If that happens, another rise to the upside is predicted; however, if this support level is breached, BTC is likely to go down to 30,650 and eventually range lows. Range Lows must be safeguarded in order to avoid a capitulation scenario.
