BTC – “Look for Quick Scalps”

1-Day Analysis:

Big Picture: The intraday strength quickly lost momentum because it was fueled by short-coverings rather than continuous momentum. As a result, the price nearly retraced the entire Thursday candle. It has taken a decent reaction off the 15,500 level once more, indicating that as price begins to trade on lower levels, demand is quickly coming in. However, given the magnitude of current selling, demand levels could fall even lower to 14,000-13,250 if Bitcoin fails to retake control of the 17,620 region.

On the Upside the initial resistance level is 16,950, followed by 17,100. The next intra-day level is visible above that at 17,620. This was the previous low, which lasted more than three months. If there is to be further upside, this level must be reclaimed and held firmly. Unless and until that happens, the upside is limited; however, regaining control of this level will invite further squeeze, with a target of 17,950 followed by 18,700.

On the Downside minor supports are being developed at 16,700-16,600. The next level of support below these levels is at 16,210. As long as this level holds, the recent lows will be protected; however, pressure below this level will likely expose Bitcoin back to the recent lows at 15,520.