8-Hour Analysis:
Big Picture: Bulls once again come to the price’s rescue in the final moments, resulting in aggressive short-covering and intra-day reversal. This push has brought BTC out of the aggressive bearish grip and back into the neutral and choppy territory. Going forward, both bulls and bears will likely compete for the trend. Bulls need to persist above 42,100 to drive prices higher, while bears need to break below 38,000 to cause additional market devastation.
On Upside between 40,750 and 40,900 is the initial resistance. Major resistances in the form of the EMA-50 and the Horizontal region converge here to form a strong resistance area. Price is likely to struggle at this level, but a break would likely extend the upside first to 41,200, then to 42,100, which is key resistance.
On Downside the day’s initial support is at 39,850, followed by 39,650. If these levels are breached, the price is expected to be exposed once more to the range of 39,300-38,950. These levels are most likely to be considered re-test supports at this time. Bulls must maintain a foothold above 38,700 to keep bears off the charts, as any weakness below this will expose pricing to the recent lows. A daily close below the 38,000 mark is not a good indicator, and it will certainly lead to more downward targets.
