4-Hour Analysis:
Big Picture: Price is still struggling in the mid-level bracket. Bitcoin has been trading close below the midpoint for the previous several hours. A similar situation occurred a few weeks ago, when price failed to break through this level and eventually sold off. If it again fails to establish a convincing stronghold over 16,920, a similar outcome still remain possible.
On the Upside the 16,850 and 16,920 levels continue to block higher movements. Furthermore, the 4-hourly EMA-200 is present between this zones, making it a critical level for Bitcoin. A break above these levels could trigger a strong impulsive move to the upside, with the 17,180 level being the next target, followed by the 17,520 level. At these levels, higher time frame resistances come into play, therefore at least partial profit-taking with aggressive risk management is advised.
On the Downside Bitcoin has fallen below the 16,850 support level once more. For the time being, the price has been exposed to the 16,740 and 16,640 support levels. Either price must retake the 16,850 level, or a re-test of these supports is extremely likely before any further bullish advances. Holding 16,640 now is critical for avoiding any intraday pressure buildups. As losing this level can expose Bitcoin into 16,520 and possibly even lower into 16,250 to 16,180 levels.
