4-Hour Analysis:
Big Picture: For the previous several trading sessions, price has displayed indecision and extreme volatility. Furthermore, Bitcoin attempted and failed once again on the range high resistance. As a result, the range-bound situation continues, with the 32,000 level limiting the upside and the 28,500 barrier shielding the downside. Price is waiting for a catalyst to break out of this range, and CPI data due later this week could potentially be a trigger.
On the Upside 30,650-30,800 is seen as the initial intra-day resistance. Following that price has now developed multiple strong resistances between 31,600-32,000 level. Initially 4-hour based EMA-200 is seen resisting the price for the past few days now. This EMA has been tested multiple times and a swift rejection was observed each and every time. Following that we have key horizontal resistance at 31,850 region. As a result, price must rise over 32,000 in order to escape short-term selling pressure and initiate a sustained upward movement towards 32,650, 33,700, and finally 35,000.
On the Downside, the trendline continues to provide early support at 29,250-29,100. The trendline looks to be a good support level at the moment, but if broken, Bitcoin would be exposed to the 4-hour range lows of 28,750-28,250 once more. This is a significant price support level, and maintaining it would favour the bulls. If this level is breached, the decline could continue towards 27,475 and potentially as far as 26,700.
