12-Hour Analysis:
Big Picture: The Bulls’ challenge continues as they face heavy rejections from the congestion zone. This has previously been a major historical level for Bitcoin and continues to be relevant, but now as a resistance. Volatility is predicted to persist as price continues to test this higher time-frame resistance zone. A gradual ascent will keep buyers in control of the trend. But, in order for the current strength to last, buyers must continue to overcome major resistances one by one, since failing to do so will undermine the current strength.
On the Upside the significant resistance level between 28,750 to 29,075 continues to pose a challenge for buyers. Even after being tested numerous times in two weeks, this region is still efficiently operating as a resistance level. This shows that there is still tremendous selling pressure above the level that has been overwhelming bidders. Buyers over 29,075 are expected to experience a short-term advantage and could drive the price higher towards 29,800, followed by the 30,000 psychological mark.
On the Downside all through the weekend, the levels between 27,880 and 27,650 provided decent support for the price. The longer this region serves as a support, the more likely it is that prices will rise above the congestion level. If this support level is breached, the price is expected to decline into 27,400 to 27,200 levels, and potentially lower towards 27,050. Additionally, since Bitcoin is caught within a narrow range, price movement closer to range lows is likely to stimulate fresh demand at lower levels while simultaneously forcing short-coverings.
