BTC – “Consolidation Likely”

4-Hour Analysis:

Big Picture: Bitcoin respected the important support levels, with the price aggressively rebounding from them. The bounce, on the other hand, is most likely caused by aggressive short-coverings after support got tested. However, downward pressure is still present. To counteract this selling pressure, consolidation at the lower band will be advantageous in order to absorb any remaining such pressure.

On the Upside the initial push has been limited to 19,550-19,800. These are significant degrees of resistance that will require strong resolve to overcome. Furthermore, EMA-50 is rapidly catching up and will most likely place itself in this zone as well, making it even more significant. If the price is to continue rising, the zone between 19,550 and 19,800 must be broken. A stronghold over this takes Bitcoin to 20,400, followed by 20,900 and potentially towards 21,800.

On the Downside Intra-day supports have been re-established between 18,900 and 18,750. If these can prevent the price from sliding further, the prospects of an upward surge grow significantly. Losing these, on the other hand, would push the price back down to 18,250-17,950.