BTC-“Watch-Out for Surprised Short-Coverings”

1-Hour Analysis:

Big Picture: After establishing a short-term low, Bitcoin is presently regaining ground inside a triangle pattern. This indicates that a breakthrough to the upside may lead to a greater rebound towards the 50% and 61.8% Fibonacci Retracements. Having said that, there is likely to be a sharp increase in volatility.

On the Upside price has resistance zone between 40,175 and 40,250 levels. As of now price is challenging this level strongly and bulls are keen for a breakout. However, this resistance zone in combination with the dynamic EMA-100 level at 40,270 is keep bulls from running higher. A sustainable breakout above these levels pushes price into 40,340 followed by 40,655 and higher into 41,450 level.

On the Downside the psychological level of 40,000 will be the starting support level for the session. The bulls would be able to test the breakout levels much more forcefully if they were to hold this level. The next support level is between 39,850 to 39,780 levels below the psychological support. At this level, the hourly channel support is also positioned.