8-Hour Analysis:
Big Picture: For the most part, Bitcoin maintained its positive momentum over the weekend. Aside from intraday profit-taking, the overall price action has been consistent. This is a very encouraging development for the struggling bulls. To maintain the volume and excitement, this strength must now move further ahead and target higher levels. Furthermore, today marks the closing of the monthly candle, so volatility can be expected for the session.
On the Upside Bitcoin is still experiencing congestion in the $20,550-20,790 range. These levels have not yet been convincingly breached. To maintain the bullish momentum, price must break through these levels as soon as possible. If this level is breached, price will be directed towards the ascending channel resistance at 21,160-21,320. These channel-based resistances will continue to trigger intra-day profit-taking until price breaks through them. Surpassing these will take Bitcoin next towards 21,850, and can further aim for 22,720.
On the Downside the session’s initial support is currently at 20,550. Following that, the next level of support is at 20,400, followed by 20,175. All of these intra-day supports have the potential to spark a favorable response. However, major session support is seen at 19,800-19,550 levels. As long as these levels hold, the short-term momentum will favor the Bulls.
