4-Hour Analysis:
Big Picture: Bitcoin’s price has fallen as it breaks through the wedge pattern. This is cause for concern, and any re-test followed by further selling will confirm the pattern. Bitcoin had recently shown signs of increasing pressure as a result of its failure to break above the 24,890 level. Going forward, the 4-hourly EMA-200 is currently holding against any aggressive sell-off. However, losing this will bring short-term aggressive bears, who are likely to cause additional damage.
On the Upside at 23,650, the initial resistance is being monitored. This is a strong intra-day horizontal resistance area that also coincides with the EMA-100 level, making it a strong barrier for the price to overcome. Breaking above this will take Bitcoin towards the re-test of the rising wedge pattern at 23,850. Unless and until price reclaims this trend, the upside remains limited; however, re-entering this trend will re-open the levels of 24,300-24,890.
On the Downside the EMA-200 stopped the selling and caused some price relief. At 23,260, this is now a significant support. As long as price holds onto this region, further sell-off will be halted; failure to do so will expose price to 22,800, then 22,200, and potentially towards 21,800.
