1-Day Analysis:
Big Picture: For the first time this year, Bitcoin has experienced more than two straight red closings. Price has been under selling pressure for the previous several trading sessions and continues to be under pressure. This corrective trend is currently re-testing the EMA-250 support level. This support level is the reason that price is still holding at present levels; any indications of weakness below this support could trigger a much more severe corrective phase, dragging price lower into lower support zones.
On the Upside the ascending trendline is creating significant resistance for the price. Until now, this level has effectively served as a S/R level. Furthermore, this level now corresponds with the intraday resistance levels that have collectively limited Bitcoin’s upside potential. Momentum will remain crowded between these levels and towards higher levels unless 25,200 is surpassed.
On the Downside 23,360 once again falls short of expectations. Bitcoin has returned to the EMA-250 support level. In recent weeks, this level has not only maintained the price but also initiated strong reversals. Multiple tests in quick succession, on the other hand, could weaken this support and expose Bitcoin to lower support levels. Currently this support is at 22,590. Once this support is lost, the lower supports at 22,200, 21,890, and 21,550 are exposed.
