4-Hour Analysis:
Big Picture: Bitcoin has stayed in an incredibly sideways trend over the weekend. The volatility index dropped to an all-time low, indicating that there was very little activity in the pair. Price action is anticipated to improve as things return to normal once again. Price is still hanging to the mid-range and needs to retake it to move higher. On the contrary, failure to recapture this level would send prices down, forcing them to re-test lower supports.
On the Upside for over a week, price has been hitting on the 16,850-16,920 level. This is a key mark for Bitcoin to recapture in order to continue its upward trend. If prices successfully break and maintain above this level, it will move higher towards 17,180 initially, and possibly further higher into 17,520.
On the Downside 16,800 has been serving as an effective support level. This level is critical for price to maintain a short-term positive bias. If this support is lost, prices would fall towards 16,550 and 16,230. These levels have also played a relatively good role, but successive tests are likely to undermine them and expose Bitcoin to recent lows.
