8-Hour Analysis:
Big Picture: Bitcoin has been sliding lower step by step since July. The sellers have dominated for over two months. They effectively drove Bitcoin from a peak of 31,800 to a low of 25,165. The price has dropped by nearly 20% from its peak back in early July. Going forward, conditions continue to favor selling, although sellers are also being restrained by the weekly support range. If sellers are able to break through these supporting levels, another notable fall is expected, however holding onto the weekly supports could lead to some recovery by the bulls.
On the Upside the downward trending EMA’s have been a huge stumbling block for the bulls. They have halted all of the recoveries that have begun in the previous several sessions. The EMAs of 26 and 50 are now proving to be the session’s initial line of resistance. Furthermore, both of these EMAs nearly correspond with the horizontal resistance levels of 25,960 and 26,125. Above these levels, the next wave of resistance appears to be between 26,350 to 26,550.
On the Downside the immediate support level of 25,620 is now being tested and bulls are finding it difficult to maintain. On the opening day of the week, the sellers have been seeking to overcome this level of support in order to fall further into the levels of 25,250 to 24,850. If the weekly supports are challenged in the next several hours, the sellers’ current move is likely to be a hyper move. After initiating the hyper move, it is critical to break below the weekly supports, or else an intense short-squeeze might occur.
