1-Hour Analysis:
Big Picture: It was warned that extremely oversold conditions could spark aggressive and panic short-coverings. Yesterday’s session saw a nearly 10-15% increase. Despite the fact that there have been numerous coverings, there is still room for further upside before the price loses momentum once more. Bulls, on the other hand, are still far from regaining control, and any potential upside will be quickly sold off until the price trades above 19,800 level again.
On the Upside the session’s initial resistance is observed at 17,500. Above that, the supply zone between 17,950-18,150 limits the upside. Around these levels, there is a lot of selling pressure. Price is likely to face significant intra-day resistance around these levels. Breaking these will, however, stretch the short squeeze next towards 18,700, followed by 19,340.
On the Downside price is beginning to establish a demand zone between 16,985 and 16,800. Buyers have expressed an interest in securing this level. Holding onto this support will encourage more short-covering, which will eventually lead to an expansion of the upside. If this zone is breached, Bitcoin is likely to fall back towards 16,510-16,215 levels.
