BTC – “Bitcoin Testing Key Supports”

4-Hour Analysis:

Big Picture: Bitcoin’s price has virtually returned to June’s levels, putting it under intense pressure. Sellers have had the upper hand in recent weeks as they have controlled the trend, but prices are already approaching June lows and aggressive short-covering cannot be ruled out. Furthermore, if the lower range retains the price and makes a strong rebound, a move back towards higher levels is still possible. To keep things under pressure and further favor selling, breakdown below 17600 must be witnessed for at least two sessions, preferably for weekly closure.

On the Upside Bitcoin has dropped below many important levels. The day’s first resistance is indicated at 18,900, which if broken can squeeze price further towards 19,200, although 19,550-19,800 are critical levels to recapture and create a stronghold above if price is to regain any lost bullish momentum. Unless that happens, the upside is limited to these levels; nevertheless, breaking over these resistances would take Bitcoin towards 20,400, followed by 20,900.

On the Downside supports at the mid-June level are back in action. Bitcoin has found immediate support in the 18,250-17,950 price level. This level is currently holding strong. The next level lower is the June low of 17,590. Both of these levels will see substantial buying pressure and will be difficult for sellers to breach. Sellers would need at least two consecutive firm closes below this support level to confirm a breakdown below these levels. This would expose the price to 15,550, followed by 14,000 mark. However, the prospects of this happening right now are slim.