1-Day Analysis:
Big Picture: Despite the worldwide sell-off, BTC has managed to maintain its 2021 annual long support level on a daily closing basis. This has been a significant accomplishment for Bitcoin Bulls, but if the global sell-off continues, there is great concern that BTC may lose this historic level and fall lower into the demand zones. In these situations, it’s best to avoid leveraged trading and focus on a quick in, quick out approach.
On Upside BTC failed to reclaim the major levels and fell back into support area intraday. The day’s initial resistance is now around 29,350, followed by 30,150-30,500. Above there, the next resistance levels are 30,800 and 31,050. To go closer to the important resistance level of 31,820, BTC must get acceptance over 31,050. Further increases are unlikely unless BTC crosses the 31,820 mark. This level has been restraining the upward since early May. As a consequence, this is a significant barrier that must be overcome before the price may reach 32,680, then 33,700.
On the Downside, The losses are now being held by a very strong support in the shape of a range low. Since January 2021, this level of 28,750 has held the whole macrostructure. As a result, this is a critical level for BTC, and whether it is held or lost determines Bitcoin’s future direction. If this level is successfully breached and the price begins to give daily closings below it, then a new round of selling is anticipated, exposing the price to the 24,000-22,000 level, followed by the next demand zone in an intense sell-off.
