4-Hour Analysis:
Big Picture: After nearly two weeks, Bitcoin has broken through the restricted range of 27,500 to 26,500 and is heading lower. It’s back to its recent lows, where a potential double bottom pattern is pushing some short-coverings. However, the price continues under pressure and may retest the 26,500 mark. A reaction off this level will determine if the price is likely to continue lower or whether a double bottom formation is in play in the immediate term.
On the Upside price may retest the recently breached support level of 26,530. For several weeks, this level has been a clear support level for Bitcoin. Breakdown below this level maintains selling pressure, but if buyers reclaim this level, sentiments could change quickly. Reclaiming and establishing a stronghold above 26,500 would indicate a deviation below the level, which could then act as a trigger for upside towards the range highs and possibly beyond.
On the Downside after losing the range low support area, Bitcoin tested the 26,200 level, which held for a few hours before giving way to lower supports in the range of 25,800 to 25,500. These are the price’s vital intraday support levels. Losing this zone would add to the already-existing selling pressure and allow sellers to move on to the 25,200 to 24,800 range. However, both of these support locations have the strength to pull off strong short-coverings, so risk management is advised.
