4-Hour Analysis:
Big Picture: Bitcoin is once again testing the 26,500 level. Price was unable to retake or surpass this level in yesterday’s session, slowing the overall trend. Furthermore, this re-test has significance for the trend’s next path. Failure to exceed this level would keep sellers active and looking for lower supports levels before any relief, whereas regaining this level would allow for intra-day short-coverings.
On the Upside the initial resistance is unchanged. Price is still testing and hitting resistance at the 26,530 mark. This level was formerly a major support level, but it is currently acting as a strong resistance. If price begins to gain acceptance above this level, a push back into 26,960 to 27,050 is likely. The squeeze could get further intense and aim for 27,230 to 27,550 levels.
On the Downside short-coverings have increased as a result of recent low support levels. Price may have had some intraday reprieve as a result of the potential double bottom formation. However, until the above-mentioned level is recaptured, overall pressure may continue to push Bitcoin towards its lower supports. If this intraday support level of 25,980 is breached, price will fall into the 25,800 to 25,500 support range. While any move below these supports would be deemed a hyper move and could result in aggressive short-covering and a swift turnaround.
