For the Afternoon Ahead
Bitcoin would need to avoid a fall back through the $47,611 pivot to bring the first major resistance level at $48,319 into play.
Support from the broader market would be needed, however, for Bitcoin to break back through to $48,000 levels.
Barring an extended crypto rally through the afternoon, the first major resistance level and Monday’s high $48,925 would likely cap any upside.
In the event of an extended rally, however, Bitcoin could target the 23.6% FIB of $50,473 before any pullback. The second major resistance level sits at $49,633.
A fall back through the $47,611 pivot would bring the first major support level at $46,297 back into play.
Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$46,000 levels. The second major support level sits at $45,589.
Looking beyond the support and resistance levels, we saw a bearish cross in the early hours. The 50 EMA crossed through the 200 EMA, with the 100 EMA also narrowing on the 200 EMA. Also bearish was a marked pullback of the 50 EMA from the 100 and 200 EMAs following the bearish cross.
Late in the morning, the 50 narrowed on the 100 and 200, providing support. Key, however, was the 100 EMA avoiding a bearish cross through the 200 EMA.
A bearish cross of the 100 EMA through the 200 and further pullback of the 50 from the 200 EMA would bring sub-$46,000 levels into play.
The bulls will be looking for a move back through to $48,500 levels in the 2nd half of the day.
A fall back to sub-$47,000, however, would give the bears the upper hand.