4-Hour Analysis:
Big Picture: The general trend continues to favor bulls, however with each new strength, profit-taking is becoming more regular. Additionally, on a daily timeframe, Bitcoin has started to develop bearish divergence, indicating that proactive risk management should now be maintained. The divergence could deepen more, implying that the trend could stay positive in the immediate term.
On the Upside the trend continues to struggle to overcome the resistance level of 72,000. On the 4-hourly time-frame, despite a few efforts, no candle has been able to close over 72,000 in a convincing way; instead, all have almost created lengthy upper wicks, indicating that profit-taking on higher levels continues, which is now overwhelming the bulls. Additional partial intra-day resistances have been placed at the 72,550 and 72,710 levels for the day. Beyond these, the next challenges sit at 73,180 and 74,650.
On the Downside the bulls have established quick support at the 71,500 to 71,300 level. Price has held these supports for the past several hours. With added resistance above and a couple of supports below, Bitcoin may enter a short-term period of higher volatility. Meanwhile, a break below 71,300 may push the price down towards 71,000, followed by 70,590, and eventually towards 70,100. Between this range, price has the 4-hourly EMA-22, which has had some strong interactions with the price.
