Big Picture: Price has had a series of mixed days in recent days, exhibiting both signals of strength and weakness. Both buyers and sellers are competing to gain or preserve their current trends. Bulls reacted well yesterday after testing the supporting zone, and they have now surpassed the trendline resistance. However, continuation above the trendline is essential; else, another corrective dip cannot be ruled out.
On the Upside price nearly approached the 38,000 level once more as strength held for the majority of the session. Strength over 37,200 allowed the move to go smoothly. However, intraday resistances are still visible between 37,580 and 38,150 levels. Short-term congestion exists at these levels, which can put prices under pressure. Above 38,150, a better continuation may be expected towards 38,800, followed by 39,250.
On the Downside price is still vulnerable towards the lower levels in the next hours, as the current drive might be totally caused by the broadening formation. Bitcoin must yet confirm its strength in order to rule out the possibility of a corrective phase. Meanwhile, there is good support at the 37,200 level for the time being. Holding this support would be preferable for the bulls since losing it could derail the bulls’ momentum and lead to another round of profit-taking, perhaps exposing price towards 36,500 and 36,100 levels.