3-Day Analysis:
Big Picture: For the past few weeks, the 19,800 level has been the focal point of all movements. Bulls have had difficulty maintaining above this level, while bears have nearly used all breakdowns below this level, intensifying the sell-offs. If the daily candle begins to close below the 17,630 level, Bitcoin may keep falling. Furthermore, due to extremely oversold conditions on lower time frames, consolidation and short-coverings are still possible.
On the Upside several new resistances have emerged. Bitcoin is expected to encounter initial resistance at 18,250, followed by 18,780. The next layer of resistance seen above this is at 19,250, followed by 19,800. This level is likely to reappear as a major resistance level again. Any retest here would certainly be viewed as a selling opportunity.
On the Downside Bitcoin has broken through the June lows, but only marginally. Going forward, 17,630 will continue to be an effective support. This support must be held in order to prevent another selling round. As pressure builds below this level, Bitcoin will be exposed to 16,200 and possibly towards 14,290-13,150 levels.
