1-Day Analysis:
Big Picture: By regaining the mid-range level and then re-entering the prior price range, the bulls laid the groundwork for a major wave of upside. This previous price range is from $25,210 to $17,640. Once bulls recaptured this level a big price rise was seen which was further driven by panic short-coverings. Going forward, Bitcoin is still re-testing the EMA-200 level, which will put buyers to the test once again and will take some determination to overcome. Failure to cross this level may result in slight profit-taking, but exceeding it will increase price bullishness to the upside.
On the Upside at 20,990, there is immediate resistance at the EMA-200 level. Above this, there is another significant horizontal resistance at the level of 21,560 to 21,890. Both of these levels are expected to be difficult for price to overcome. However, if bulls manage to keep the momentum rolling and overcome these levels then they are expected to target 22,500 to 22,990 next followed by 23,500 level.
On the Downside several Bitcoin supports have resurfaced. Price is projected to see initial support at 20,400 level followed by 20,075 level. When tested, these supports are likely to provide positive reactions. Below these levels, the next supports are visible at 19,450 level and 18,880 level. These are important re-test levels for Bitcoin. Bitcoin is bullish as long as it trades above the 18,280 threshold.
