4-Hour Analysis:
Big Picture: Price is in a slowing phase as it consolidates inside a small range of around 1000 dollars, with 52,500 acting as a resistance zone and 51,500 acting as a support zone. Aside from a few outliers, price has remained generally stable in this range during the previous five trading sessions. This continued consolidation might be a distribution phase or a re-accumulation phase for the next leg. A breakout on either side would confirm the phase.
On the Upside no significant breakthroughs over 52,550 were noted. In addition, a short-term evening star developed at this resistance level, pushing prices back down. This will once again be a major challenge for the session, along with the 52,800 level. These resistances have stayed persistent for the past five days. A sustained hold above these levels allows the price to advance higher, initially towards 53,490, followed by 54,200, where the channel resistance is located.
On the Downside the horizontal supports, in combination with the dynamic levels, are currently offering substantial support at the lower supports. These supports are now positioned at 51,600 and 51,250 levels. Price just retested this supporting zone and is on track for a strong recovery. This shows that the “Buy on Dip” stance currently being employed by the bulls. To counteract this current trend, a drop below 51,250 is essential for sellers. Only then will they be able to drive prices lower.
