For the Afternoon Ahead
Bitcoin would need to avoid a fall back through the first major resistance level at $35,243 to bring $36,000 levels into play.
Support from the broader market would be needed, however, for Bitcoin to break through the second major resistance level at $35,992.
Barring an extended crypto rally, the second major resistance level and resistance at $36,000 would likely cap any upside.
In the event of an extended crypto rally, Bitcoin could test resistance at $38,000 levels. The third major resistance level sits at $37,414.
A fall back through the first major resistance level and through the $34,570 pivot would bring the first major support level at $33,821 into play.
Barring a crypto sell-off through the afternoon, however, Bitcoin should steer clear of sub-$33,000 support levels. The second major support level at $33,148 should limit any downside.
Looking beyond the support and resistance levels, it has been an eventful morning. The 50 EMA has continued to pull away from the 200 EMA following yesterday’s bullish cross. We have also seen the 100 EMA close in on the 200 EMA lining up for a bullish cross today.
A further narrowing of the 100 EMA on the 200 EMA would bring $36,000 levels into play, however.
A bullish cross of the 100 through the 200 would bring $38,000 levels into play, with the Bitcoin bulls continuing to eye a return to $40,000 levels.
Key going into the afternoon will be to avoid a return to sub-$35,000 levels and the day’s pivot level at $34,570.