3-Day Analysis:
Big Picture: Bitcoin held its pivotal levels on both sides during the weekend. Previously, during Friday’s session, sellers wanted to break price lower, but they failed, and price maintained the support levels once again, negating the sellers. Bulls, on the other hand, looked for a break over the 31,200 mark but failed to gain intra-day strength above that level. This has maintained Bitcoin in a state of consolidation throughout the weekend. Furthermore, Bitcoin may be on the verge of forming a cup and handle formation, which could signal the start of a second leg of upswing aiming higher levels in the coming sessions.
On the Upside Bitcoin has been stalled by resistance levels ranging from 30,750 to 31,200. These resistances have kept Bitcoin from advancing towards the weekly resistance zone. Having said that, the consolidation favors bulls in general as long as intraday supports hold. A break over 31,200 propels Bitcoin towards the 31,800 mark, followed by 32,650. Since these levels constitute weekly resistance, profit-taking cannot be ruled out near them.
On the Downside Bitcoin has significant protection between the support levels of 30,000 and 29,800. Despite several tries over the previous two weeks, no daily candle has closed below these support levels. Showcasing that these supports are both strong and dependable. Intra-day supports above this level, however, are at 30,400 and 30,250. Unless and until sellers breach below 29,800, a larger wave of profit-taking and re-testing seems unlikely.
