1-Day Analysis:
Big Picture: The sellers are seeking to transform their profit-taking into intra-day panic selling as prices begin to fall below the midpoint of the current range of 32,950 to 48,240 levels. The bulls have been controlling the momentum for several months, but after reaching a few important levels on the upside, the bulls have effectively set the way for the current corrective phase.
On the Upside if prices attempt to rebound, there will be enormous immediate pressure. The session’s first important resistance is the 40,610 level, which is mid-range that has lasted for about 50 days despite multiple attempts. Bulls can extend the corrective phase by reclaiming this level and maintaining a grip above it. Failure to do so will result in a new wave of selling, while strength over 40,610 allows for some significant short-covering back towards 41,045 and 41,450 initially.
On the Downside Bitcoin is now firmly pushing the daily EMA-100 level of 39,280. This level faces its first challenge after 100 trading days. The EMA-100 appears to be struggling right now, but if sellers show any signs of weakness, aggressive short-covering might occur. Meanwhile, below this dynamic support level, the next supports are at 38,550 and 37,800. Aggressive short-covering is recommended on weakness.
