BTC – “Further Room for Upside”

8-Hour Analysis:

Big Picture: Following the announcement of the CPI, the session was quite volatile. Both buyers and sellers were aggressively penalized by price. Furthermore, it was stated that Bitcoin is likely to stay range-bound unless the price breaks through and maintains the breakthrough. The initial sell-off met significant short-coverings, causing the price to revert to the ascending channel. Currently, the price is approaching the 2018 All-Time High level; a partial profit-taking is probable, and any breakthrough will result in another severe short-squeeze.

On the Upside the levels 19,550-19,800 are being re-tested. These are still functional S/R levels. Unless and until the price is accepted above this level, the upside will be limited. However, a break over this level will push the price up to the 20,200 and 20,550-20,790 range levels. Expect profit-taking at these levels if tested.

On the Downside the trendline supports are still valid since price did not close any candles below them. Furthermore, the 18,400-18,100 level has gained additional strength as a support level. Buyers must now hold both of these levels in order to invite a stronger wave of upside. Failure to do so would undermine the possibly growing positive momentum.