2-Hour Analysis:
Big Picture: For the previous seven trading sessions, Bitcoin has been trading inside a 3-4% price range band. Prices were being capped on both ends by dynamic EMAs. Yesterday’s session began with a significant sell-off, but lower supports did an excellent job of keeping the price from falling much further. Since hitting the 16,800-16,700 range, the price has been trading sideways for the majority of the day.
On the Upside the immediate resistance level of 16,900 remains solid. Following that, the next resistance zone is between 17,065 and 17,250. These are the EMA-25 and EMA-32 levels, respectively. Since November 2021, these EMAs have been the primary trend drivers. When Bitcoin traded above these dynamic resistances, the overall price action favored higher prices; when prices traded below these dynamic resistances, the prices remained under pressure. Until Bitcoin surpasses these levels, the upside is restricted. Any strength above them initially pushes the price towards 17,500, followed by 17,620.
On the Downside the support levels ranging from 16,800 to 16,700 have performed exceptionally well. Although the initial reaction was mild, these supports have held very well over the previous 24 hours. To counteract the current pressure, buyers should preferably step up again and move prices over the 2-hourly EMA-200. Failure to do so may weaken this support level as a result of several attempts, and losing this support exposes Bitcoin to 16,550 and possibly lower towards 16,230, with room for more downside.
