1-Day Analysis:
Big Picture: The volatile situations are starting to get prominent. Later in the day, there was another intra-day drop, although it was swiftly reversed by bidders. Such circumstances could very well last till the end of the year. Furthermore, as the year comes to a close, volumes may become scarce in the coming days.
On the Upside the price is poised to retest the 16,800 level. This level must be cleared out early in order to have more upside push. If this level is successfully broken, the price will rise towards 17,220 and 17,380. This is where aggressive profit-taking is likely to occur. Any squeeze higher than here might prompt sell off. To relieve the pressure, Bitcoin must return above the 17,640 mark and provide at least 2-3 daily closings above for confirmations.
On the Downside 16,700 has been regained and is expected to provide intra-day support once again. Below there, the next supports are at 16,550 to 16,230. Yesterday’s decline was effectively contained between these levels, indicating that there is still demand in lower price levels.
