Day Analysis

Big Picture:The bearish pressure triggered Max Pain point on Friday. That happened as a result of breach of 40k level psychological demand zone. Last week price failed to give a successful breakout above the falling resistance which gave red carpet invitation to bears who made no mistake and brought carnage over charts. Now going forward break of 40k opens door for re-test of Range Bottom once more. Remember that this is the very zone that has been acting as make or break point between bulls and further aggressive bears. Once again bulls will be tested with the resolve and in my view first attempt will not break this level.

On Upside first resistance is observed around 36800-37200 region. However a break and hold above this level will open 38800 which could potentially act as top for the day. Bar that 40k level will now act as a major resistance and range top.

On Downside BTC is about to move into the CME gap zone that is present at 32700 which is initial support. However the magnet of price is still pointing towards a test of range bottom between 31-29k which will serve as a strong support and a point of aggressive short covering followed by potential fresh buying.