1-Day Analysis:
Big Picture: Bitcoin remains in a volatile trading range. It challenged the above resistance level and lost points again before closing the session with a Doji candlestick formation. Indicating that there is price indecision at these levels. However, given the current trend, the price may continue to increase slowly and gradually towards the EMA-250 level, where a higher magnitude of profit-taking is still possible. In any case, such a steady climb may weaken the momentum.
On the Upside the levels 21,560 and 21,890 continue to function as immediate resistance levels. The initial tests have all failed to demonstrate any strength beyond this level, indicating that this level is very resilient. Above them, the EMA-250 at 22,550 provides next significant resistance. This level is likely to restrict the upside potential of early attempts. Furthermore, significant profit-taking for Bitcoin is still likely at these levels.
On the Downside the EMA-200 contained yesterday’s intraday sell-off and kept the price from plunging lower. This level has been regarded as a strong initial support, and holding it will only benefit bulls given their current momentum. Furthermore, if this level is breached, the possibilities of a larger profit-taking scenario increase, initially exposing Bitcoin to the 20,400 level, followed by the 20,075. Positive reactions to re-testing of these supports are to be expected, but if profit-taking persists, the price may fall even lower into the 19,450 to 18,880 range.
