12-Hour Analysis:
Big Picture: Bitcoin remained in a consolidative environment throughout the weekend, with no significant price movement. Also, price is forming a converging triangle pattern, the breakout of which will most likely lead to the next trending move. The current congestion zone for Bitcoin represents the previous macro-support levels. For over 500 trading sessions, Bitcoin maintained these levels between 28,750 and 30,000 as major weekly supports. Going forward, these levels will be under-tested as resistance and price is expected to confront significant challenges in this region.
On the Upside Bitcoin is still constrained by the 28,750 to 29,075 resistance levels. Even after several efforts, price has been unable to break through this level. Additionally, if price continues to reject this resistance zone, bulls are expected to enter a phase of exhaustion, with price seeking for lower-supports to energies itself. However strong and sustainable stronghold above 29,075 is necessary to push the upside higher into the 29,800 to 30,000 range.
On the Downside intraday supports ranging from 27,750 to 27,450 have been keeping the price stable. Also, EMA supports are rapidly approaching. Bitcoin is forming a solid supporting terrain between 27,750 and 26,600 levels, and these supports have kept Bitcoin from entering a correction phase in recent trading sessions. These supports are essential for buyers to retain; otherwise, price may encounter a stronger push to the downside. Moreover, failing to break through the congestion zone will weaken these support levels due to the likelihood of rising profit-taking.
