BTC-“Short-Coverings Recommended”

3-Day Analysis:Big Picture: After over a month the range is starting to crumble for the first time. The sellers have initiated the move towards the downside after seeing bulls fail their breakthrough above the range levels and the weekly levels. Having said that, bulls still have a few positive developments underway. Bitcoin on the 3-day chart is inching closer toward a Golden-Cross formation. If bulls can achieve this development, it would be the first Golden Cross formation since May 2019.

On the Upside the first level of resistance is at 29,200. This is the most recently lost support level, which has now become a resistance level. Above this, the next level of resistance is at 29,525 followed by 29,630. The major resistance for the session continues at 29,800 to 30,000 levels. Bulls must recover this area to offset the prevailing selling pressure.

On the Downside the initial test into the lower supporting zone prompted some minor intraday short-coverings, but the reaction has not been aggressively favorable. This suggests that the pressure is still significant, and bulls will need to hold and absorb the remaining pressure before they can begin to recover. The session’s support remains active at levels ranging from 28,800 to 28,650. However, another intra-day support level of 28,940 is forming.