3-Day Analysis:
Big Picture: After a few sessions of sideways market movement, the pressure returned and pulled the price back towards the lower key support levels. The weekly levels are now being challenged, and a reaction still remains expected. At current levels, fresh sellers should be cautious, and any additional weakness should be actively exploited for short-covering.
On the Upside buyers are unable to take advantage of the emerging falling wedge formation. The wedge is losing its bottom support channel, which will serve as the session’s early resistance barrier at 25,180. Above this level, the price next faces resistance from the 3-day EMA-50 at 25,600. This EMA kept price from falling for more than a week, but bull’s weakness ultimately breached the level, which will now serve as resistance. Surpassing the 25,600 mark would be an encouraging sign for the session, allowing additional gains towards the 26,200 and 26,600 levels.
On the Downside price is currently testing the weekly support levels ranging from 25,110 to 24,470. This region will be vital for Bulls to defend since it is the weekly breakout level that previously drove the breakout over the 30k barrier. Loss of this support would damage Bitcoin’s weekly outlook and could open the door to further lower levels. However, because these are weekly supports, weekly closure will continue to be necessary for the supports. Any significant move below these supports will be referred to as a “Hyper-Move.”
