BTC-“Panic Short-Coverings Noticed”

12-Hour Analysis:

Big Picture: Following a massive selling spree, Bitcoin saw unusually significant short-coverings just on the eve of the weekly close. The previous week finished with a Dragonfly Doji candlestick pattern, signifying uncertainty. Having said that, short-coverings were stronger than expected, but sellers were cautioned earlier. Going ahead, a similarly strong reaction from the top bands of resistance could be noticed. Overall price activity is expected to become more volatile in the coming days.

On the Upside significant resistance is likely between 22,550 and 22,800 levels. Intraday pressure could reappear in this region. Breaking through this level, on the other hand, would accelerate the upside, driven by panic short-covering and possibly fresh buying. Over 22,800, the next price targets are 23,300 and 23,800.

On the Downside Bitcoin is aiming to convert 21,890 into a level of support. This could serve as the session’s initial level of support. Nevertheless, the next supports are at levels ranging from 21,380 to 21,180. This region is likely to limit any possible selling for the sessions. If it is breached, Bitcoin may well go back into the 20,780 to 20,550 support range, and possibly towards the previous All Time High support level of 19,790.