BTC-“Downside Risk Present”

1-Day Analysis:

Big Picture: Sellers were successful in triggering greater intraday losses for the price. Bitcoin has lost its previously acquired congestion zone and is now testing lower supports. Overall, buyers are having difficulty recovering lost control. Going ahead, the price might stay volatile over the next several trading hours.

On the Upside the EMA-32 level at 28,250 provides immediate resistance. Surpassing this will push the price back into the congestion zone, where aggressive profit-taking may occur. Buyers will struggle to exceed this level on their first try. However, late sellers may provide fuel for an aggressive short-covering surge.

On the Downside Yesterday, the support level of 28,800 was breached, resulting in fresh selling pressure, exposing Bitcoin to lower supports. Price also lost the 28,200 level and came dangerously close to hitting the lower support of 27,600. However, the trendline support in between stopped the selling pressure and continues to provide price support at that level. Loss of this trendline support would result in another selling spree, although sustaining this for a bit longer could cause intraday short-covering. If the price falls below 27,850, it will go lower into the 27,600 level, followed by the 27,200 level.