12-Hour Analysis:
Big Picture: BTC has breached a key support area. This level should have been maintained in an ideal circumstance. Recovering the 40k level is critical going forward; else, a dip into the liquidity zones is likely. Since fresh orders are ideally resting there, the price is likely to react to the liquidity zone. Once price starts to persist below 35,550, the macro-range starts to tremble.
On Upside, 40,290 is the first point of resistance, followed by 40,450. At 42,200-42,950, the next wave of resistance is expected. Bulls, on the other hand, will face severe challenges at 44,000 and 45,500. These levels must be reclaimed and maintained if BTC is to make a new attempt to break out over 46,400. In the blink of an eye, a successful breakout above 46,400 will open 48,000, with 50,000 as the next upside target.
On the Downside BTC also broke through the MA-200 12-hourly, which isn’t a good indication. On this downtrend, a number of critical supports have been breached. However, a relief cannot be ruled out, due to much oversold circumstances on indicators. Unless 40k is prominently reclaimed in the near term, a move towards the liquidity pool remains the most likely target region. The liquidity pool is observed in between 38,000 and 37,000 level. To negate this, BTC must maintain a price over $44,000.
