BTC – “Downside Risk Increasing”

4-Hour Analysis:

Big Picture: Overall, price activity was choppy and sideways, although bears pulling a breakdown attempt that failed as price took support of prior All-Time High support level. Furthermore, the present pattern suggests a bearish flag. The pattern target would look towards re-test of major swings lows around 17,600. However to induce further pressure upon prices breakdown below 19,800 would be required. To avoid such a situation, bulls must retake 21,800 this time.

On the Upside the prior session’s potential upside move was capped at 20,400. This level is once again developing a strong resistance that must be broken in order to open the door to additional gains. Successfully breaking this will take prices at 20,900 initially followed by 21,800. Bulls would need to establish a stronghold above this region to negate any further weaknesses. 

On the Downside the 19,800 barrier has been protecting prices from a sell-off. This is still a significant S/R level for Bitcoin, and holding it remains necessary for price to negate any further potential sell-off. If this level is lost, lower support levels around 18,900-18750 would be exposed, followed by swing lows around 17,600.