1-Day Analysis:
Big Picture: The pressure was building up as the upward momentum began to wane. Buyer’s exhaustion has resulted in a corrective reversal. After 20 trading sessions, sellers have managed to breach the important EMA-250 support level. Furthermore, a significant amount of liquidity has been tapped at lower levels; it may correct further, but bulls must restrict this drop to around 20,000 level to keep aggressive sellers at distant. Going below this psychological level increases the risk of a higher time frame reversal and re-test of the 17,640 zone.
On the Upside several new intra-day resistances have been added. Price is anticipated to meet heavy resistance upon re-testing the lost supports after breaking a 20-day long range. Initial intraday resistance is likely to be intense at 22,200 and 22,300. Above this, at 22,610, the EMA-250 level is now expected to act as a resistance level. The session’s upside is expected to be limited by this level. The corrective phase is expected to continue ahead unless the price is re-accepted above the 22,610 mark.
On the Downside Bitcoin is currently testing the 21,890 and 21,550 support levels. These supports not only halted the massive sell-off yesterday, but are also driving a push higher. These are significant and powerful supports that will make it tough for sellers to drop prices much further. If price can maintain these supports over the next several hours, we may see a re-test of recently lost supports. If these supports are breached, the price will fall towards the 20,655 to 20,400 range. However, at current levels, further short-coverings are anticipated.
