12-Hour Analysis:
Big Picture: Following a strong move to the upside, price is beginning to range and consolidate once more. The ongoing hyper rally has remained nearly vertical, with no notable re-tests or cool downs. The ensuing consolidation will make room for the already exhausted indicators and participants. Moving forward, a re-test of lower supports is probable, as is another push above before any downside. Hence volatility is expected to increase during the session.
On the Upside price is beginning to face pressure around the main resistance levels above. A severe congestion zone is now seen between 28,490 and 29,075 levels. Bulls are approaching a significant corrective milestone. Since this level represents 23.6% of the Fibonachhi retest, some reaction could be observed, even if just in terms of profit-taking. If Bitcoin begins to sustain above the 29,075 mark, it is expected to climb higher and try for further resistances above in the 29,800 to 30,000 range.
On the Downside the initial support level of 27,550 stays solid. The first response to this support has been good. If the price remains at this supporting level, the short-term corrective phase will be avoided. If sellers accomplish a sustained breakdown below this level, a downward re-test of supports is likely, with the initial target of 27,220 followed by 26,950. Below these levels, the second wave of supports remains at 26,200, with the majority of them located between 25,550 and 25,200.
