8-Hour Analysis: Big Picture: Bitcoin has retraced more than half of the most recent corrective push after testing the key 8-hourly EMAs. The rally that began on September 11th was halted by EMA resistances on September 19th. The congestion zone higher was highlighted as an important threshold that had to be breached if the bulls were to continue higher. Having said that, if the weekly levels hold, Bulls will eventually overpower the congestion positioned above.
On the Upside multiple intra-day resistances are positioned between the levels of 26,250 and 26,500. While dealing with these levels, Price is likely to experience some difficulties. Previously, these levels served as supports and were able to hold price despite multiple tests. Surpassing this resistance range would allow the price to test the next higher resistances at the levels of 26,940 followed by 27,125. However keep in view that there are numerous resistances between the levels of 26,940 to 27,450.
On the Downside the price is currently vulnerable towards the levels of 25,880 and 25,620. These are the sessions’ major intra-day supports that are most likely to draw positive response. Furthermore, there is a weekly support level around 25,812 that has not allowed any candlestick to close below it on a weekly time-frame since early May. On the daily, price was only able to break through this support twice, leading to a re-test of the weekly support around 25,250 to 24,850 levels, followed by a quick and sharp bounce. Owing to the prevailing supports, short positions still remain at the risk close to these levels.