For the Afternoon Ahead
Bitcoin would need to move through the $37,699 pivot to bring the first major resistance level at $40,166 into play.
Support from the broader market would be needed for Bitcoin to break back through to $40,000 levels.
Barring a broad-based crypto rally, the first major resistance level and Monday’s $40,595.0 would likely cap any upside.
In the event of another extended crypto rally, Bitcoin could test resistance at $45,000 before any pullback. The second major resistance level sits at $43,061. Bitcoin would need plenty of support, however, to breakout from the 38.2% FIB of $41,592.
Failure to move through the $37,699 pivot would bring the first major support level at $34,804 into play.
Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$35,000 levels, however. The second major support level sits at $32,337.
Looking beyond the support and resistance levels, we saw the 50 EMA flatten on the 100 and 200 EMAs this morning. This led to the relatively range-bound session, with Bitcoin failing to break back through to $40,000 levels.
We saw the 100 EMA pull away from the 200 EMA, however, providing support to Bitcoin and the crypto bulls.
A further narrowing of the 50 on 100 and 200 EMAs this afternoon would bring sub-$36,000 levels into play.
Key going into the afternoon will be for Bitcoin to break through to $37,699 pivot to bring resistance levels into play.
Following late Monday’s reversal, Bitcoin would need to avoid sub-$35,000 levels else face a sharp pullback.