1-Day Analysis:
Big Picture: As price approaches the weekly resistances, the circumstances remain challenging and choppy. Neither the bulls nor the bears have made a significant breakthrough in the recent days. Both have avoided making any extreme moves. Previously, the lower time frame indicators were significantly stretched, making it difficult for bulls to maintain their aggressive climb. The overstressed conditions have finally subsided, and there is yet opportunity for another rise. While for sellers they must drop Bitcoin below the 29,800 protection to trigger a deeper pullback.
On the Upside another attempt to push the price above the resistance zone fails for the moment. Bitcoin is still facing significant resistance between the 30,750 and 31,200 levels. Multiple resistances exist in this region, limiting upward potential for the time being. A clear sign of strength above this level drives price towards the weekly resistance levels of 31,800 to 32,650, which provide attractive profit-taking opportunities.
On the Downside Bitcoin’s initial support levels remain solid between 30,400 and 30,250. These are Bitcoin’s first line of protection. While it has major protection at levels ranging from 30,000 to 29,800. These are now significant psychological support levels, which have kept the price from falling further. Maintaining these levels also enhances the likelihood of a push higher into the weekly resistances. Should the price fails to maintain them, Bitcoin could be headed for a deeper pullback towards the 29,200 and 28,800 levels.
