4-Hour Analysis:
Big Picture: An extremely volatile session was witnessed, where price initially remained under-pressure. However, we observed strong short-covering at support levels and towards the monthly candle’s close. Going forward, the reaction off the supports was quite good, but this might also be related to profit-taking for monthly book closings. As a result, a breakthrough above the previous all-time high followed by a re-entry into the 20,000 zone is required for confirmation. The stronghold should be maintained for at least 2-day closure to act as a valid confirmation.
On the Upside the first resistance level of 19,800 remains unchanged, as the previous all-time high. Bulls attempted to reclaim the level but were turned down. The next level of resistance, however, is indicated at 20,500-20,700. This level coincides with the EMA-50, making it a critical level for price to break through. Above that, the next threshold is at 21,350-21,500. Price must climb above this level for continuing towards 22,200 followed by 22,800.
On the Downside lower support levels came for the price rescue and halted the fall. Both the support levels at 19,050 and 18,590 played key role in limiting the fall and triggered a strong round of profit-taking. These supports are still likely to act as strong support zone. However any back to back hourly closing below 18,590 could extend the downside further towards recent. Holding onto the recent lows remains very important, as losing these levels could call upon another wave of aggressive selling exposing Bitcoin towards 17,300 followed by 15,850 with potential for further lows.
