BTC-“Ascending Channel Formation”

4-Hour Analysis:

Big Picture: Bitcoin was unable to maintain its ascending channel structure, and it broke to the downside, resulting in extremely strong profit-taking rounds. This time, the EMA’s test failed to produce any positive reaction, opening the way for the breakdown lower. Going forward, the price is seeing very serious corrective fall, driven by extremely heavy profit-taking. The conditions on the daily timeframe continue to indicate overall strength, implying that aggressive buyers could shortly move in at reduced prices.

On the Upside a lot of previously regained levels in Bitcoin are expected to become resistances again. The initial barriers have been set at 67,750, followed by 68,250 and 69,000 level which was previously the All-Time High. These levels could function as powerful hurdles for the day if tested. Price may see additional selling around these levels.

On the Downside the corrective decline has pushed the price lower, into deeper supports. Price just touched 65,555 and is reacting strongly to this support level. The 4-hourly EMA-100 at 66,100 level provides close-by protection for this horizontal supportive level. Both of these levels are currently promoting the significant recovery. Volumes are rapidly rising, indicating aggressive short-covering and possibly fresh buying. Meanwhile, any fall below this supportive zone of 65,555 could extend downward pressure further towards 63,400 to 62,950 levels. This region has a wickless candle, which could be a price objective.