4-Hour Analysis:
Big Picture: Bitcoin has had a difficult few weeks as market sentiment has remained negative. BTC has set a new record with eight consecutive weekly red (bearish) closings. Following that, the price has managed to close at its lowest level since January 4th, 2021. Despite all of the adverse sentiment, Bitcoin has managed to hold the critical support level of 28,750. As long as this support level holds, there is a good probability for a relief rally towards 32,800, followed by 34,000-35,000. However, a loss of 28,750 will set off another selling spree, with lower supports likely to be targeted.
On Upside Price is struggling once more near the 30,500-30,800 level. This mark has not been properly broken since May 11th. Hence making it a key level to break for continuation to the upside. If this level is successfully broken, the next level of resistance will be 31,080, followed by 31,350. However, the key resistance level for Bitcoin is seen at 31,850. If price can hold above this level, we will likely see movement into 32,680, then 33,700, and finally into the unfilled CME Gap.
On the Downside, A new CME gap has opened between 29,990 and 29,075. These gaps are frequently used as important price targets. However, the EMA-50 provides initial support for the day at 30,050. The next level of support is indicated at 29,530, followed by 29,075. These are good intraday supports, but if they are breached, the downside will be extended to 28,750, then 28,200. If these lows are tested, expect a decent reaction.
