BTC-“Choppy Price Action to Continue”

1-Day Analysis:

Big Picture: Yesterday, there was a significant increase in market volatility. Bitcoin initially stayed under intraday pressure, but before the session ended, there was a surprising move from buyers that pushed prices back above. This advance, however, was restrained by intraday resistances ranging from 23,360 to 23,840 levels. Going ahead, the consolidative environment will likely persist unless the participants make a decisive move.

On the Upside Bitcoin recorded its highest daily close for the week, crossing the $23,000 mark. Having said that, the price was once again denied at intraday resistance levels ranging from 23,360 to 23,840. For the previous several trading sessions, these resistances have been restricting the upside potential, and unless a clear advance above them is achieved, the upside will stay contained at these levels.                                                                     

On the Downside another strong reaction is provided at the EMA-250 level. Bitcoin is now trapped between the strong supports of the EMA-250 and the EMA-200, with major resistance above. As a result, the pair’s volatility has increased. The EMA-250 is expected to continue providing solid support; however, if Bitcoin fails to consistently break above the above resistances, the price may fall further into the lower support zone involving the EMA-200 and horizontal based supports at 21,890 to 21,550 range levels.