4-Hour Analysis:
Big Picture: As the year 2022 comes to a close, the sellers have prevailed. For the most part of the year, sellers controlled the trend. The New Year begins with a hopeful outlook as Bitcoin recovers. In the coming hours, price might re-test the mid-range once more. This re-test is critical since any prolonged strength above it could lead to a much healthier corrective cycle. However, if sellers once again prevent any advances above this level, a much stronger selling pressure is likely to take over.
On the Upside for the time being, the price is hitting initial resistance near the 16,750 level. However, the session’s main resistance is set at 16,850-16,920. Both horizontal and dynamic resistance occupy this level. The dynamic resistance comes in the shape of the 4-hourly EMA-200. Price is expected to struggle around these levels. Furthermore, significant strength and resolve is required from buyers to establish a stronghold above this barrier level. Acceptance of price above this level will push it to 17,180, followed by 17,520 as next upsides.
On the Downside the previous level of 16,520 was considerably overwhelmed by selling pressure, but it survived and has now initiated a significant reversal. This level of support is still valid and is expected to provide even better support in future. The next support zone observed below this at 16,250 to 16,180 levels.
