Big Picture: After a volatile session, there is a spinning top kind of candle on the Daily time-frame for Bitcoin. There has been some indecision at the lower levels, but the appearance of a bullish spinning top candlestick might lead to a short-term corrective upside. Meanwhile, breaking above the intraday resistance level of 42,960 would be critical for Bitcoin to begin a much more sustained uptrend, while any rejections from that level will likely resume the bearish correction lower.
On the Upside another rejection from the 42,000 level resulted in a drop back to the mid-mid-range level. If Bitcoin is to test the Fibonacci retracement at 42,350 and the 42,960 horizontal intra-day obstacle, it must show strength above 41,850 to 42,000 levels on the lower time frames.
On the Downside the mid-mid-range is providing solid support between 40,650 to 40,520 levels. Several drops have been attempted in the previous few hours, but each time price has been able to hold this level and drive price higher. Although the pushes higher are now decreasing in magnitude, this indicates that support may be diminishing as a result of multiple tests. If bulls can somehow maintain this, a short-squeeze higher is still possible; however, breaching this support pushes Bitcoin lower into 39,980 and possibly into 38,200 levels.