It’s been a choppy morning, with Bitcoin testing support levels early. A move back through to $50,000 would support a run at $52,000 levels.
Bitcoin’s Morning Session
At the time of writing, Bitcoin, was down by 1.44% to $48,762.
A mixed start to the day saw Bitcoin rise to an early morning high $49,522 before hitting reverse. Falling short of the first major resistance level at $50,209, Bitcoin fell to a late morning low $47,167.
Balling through the first major support level at $48,300 Bitcoin found support at the second major support level at $47,125 to move back through to $48,700 levels.
Key through the morning was avoiding sub-$47,000 and moving back through the first major support level.
For the Afternoon Ahead
Bitcoin would move back through the $49,034 pivot to bring the first major resistance level at $50,209 into play.
Support from the broader market would be needed for Bitcoin to break out from Sunday’s high $49,769. Barring an extended rally, the first major resistance level should limit the upside.
In the event of a broad-based crypto rally, Bitcoin could test resistance at $52,000 levels. The second major resistance level sits at $50,943.
Failure to move back through the $49,034 pivot would bring the first major support level at $48,300 back into play. Barring another extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$47,000 levels. The second major support level at $47,125 should limit the downside. In the event of a sell-off, the third major support level at $45,216 could come into play…
Looking beyond the major support and resistance levels, we saw the 50 EMA pull back from the 100 and 200 EMAs. We also saw the 100 EMA pullback from the 200, adding further downward pressure.
Through the afternoon, a narrowing of the 50 on the 100 would support a breakout and a run at $52,000 levels.
For the bulls, a move back through the day’s pivot and a return to $50,000 levels would be key to avoid another sell-off, however.