8-Hour Analysis:
Big Picture: Price has been in a recovery trend after testing the weekly supports. Price has nearly recovered by 8% in the previous few days. Furthermore, the price has flipped the immediate key resistance, which might lead to more short-covering in the coming hours. In addition, these corrective bounces are projected to persist as long as Bitcoin sustains the weekly support levels. However, any extreme short-squeeze into the ranges of 28,585 to 28,880 could draw fresh selling, therefore fresh buyers are urged to exercise caution around these levels.
On the Upside Bitcoin is breaking through resistance levels one by one, and doing so with increased volume. In the short term, this suggests that bulls are looking for another round of corrective surge, which might potentially target for higher levels. The session’s first obstacle remains the 8-hourly EMA-100. Previously, this EMA had restrained the bullish rise. The EMA stands at 26,650. Above this level, the next resistance levels are 26,940 and 27,125. However, the key resistance for the session is around 27,400 to 27,450 levels due to the presence of 8-hourly EMA-200 and 50% Fibonacci retracement.
On the Downside Bitcoin continues to add supports. As they continue to rebound, bulls have been re-adding to the support levels. The prior resistance zone of 26,220 to 26,550 has been changed into a support zone. The bulls are showing good intent by adding protection following each move. Aside from the major support, pricing is expected to benefit from the EMA-50 level, which sits around 26,180. Below this, there is another close support around 26,125, and after that any substantial support would be around 25,800. However, the bulls are now holding well for the session, and if sellers want to break this momentum, they must pull price down below 26,125.
