3-Hour Analysis:
Big Picture: The prior range bottoms have now been transformed into a resistance zone. Price was rejected at both the horizontal and trendline levels. These were important levels to regain in order to offset the escalating selling pressure. Having said that, buyers must regain their lost momentum, as repeated rejections off the resistance zone could trigger another round of selling.
On the Upside buyers attempted a break above the immediate resistance level yesterday and nearly succeeded, but the next candle was rejected from the channel barrier at 23,790 and immediately sold off, bringing the price back below the resistance zone. These levels, 23,530 to 23,630, will continue to act as initial resistance, followed by channel resistance at 23,825. These levels are essential to break in order to open any further upside movement for the price.
On the Downside the initial support level held pretty well and is still providing intraday support for the price. If this level of support is breached, the price will retest the EMA-250 level at 23,010. Bitcoin is likely to escape another sell-off as long as the EMA support level and the horizontal support at 22,800 are sustained. Failure of these supports, on the other hand, will very certainly trigger another sell-off, with an aim of 22,200 and possibly lower.
