BTC-“Consolidation Expected”

1-Day Analysis:

Big Picture: Volatility is increasing as the struggle between an extended run to the upside and a possibly lengthy profit-taking event intensifies. After a huge surge to the upside, Bitcoin was predicted to get uncertain at these levels. It is now losing the EMA-200 level and may fall further and re-test important Fibonacci levels before continuing to rise. However, in order to continue to run from the current levels further consolidation is essential.

On the Upside the EMA-200 at 20,900 might serve as the session’s opening resistance. Above this is the zone at 21,560 to 21,890, which has been limiting the gains for the previous three to four trading sessions. Bitcoin must get acceptability above this level in order to hit the EMA-250 level at 22,540 next. Any sustained upside appears unlikely unless both of these daily resistances are overcome with strength.

On the Downside the EMA-200 is being breached, which is a cause for concern and calls for caution generally. The loss of this EMA has the potential to increase the downside capacity. Bitcoin tested the 20,400 milestone yesterday and had a strong first reaction. However, the pressure will continue on the support level unless the above resistances break. The next level of support below 20,400 is at 20,05, followed by 19,450 and 18,880.