3-Day Analysis:
Big Picture: Bitcoin’s June support level is still firmly in place. Furthermore, the present structure suggests a converging triangle. The breakout always dictates the direction; but, with so much damage already done, holding a shorting stance will not be a wise approach as long as the lower support levels hold. If a breach occurs, it is far safer to behave as a seller with effective risk management. Unless a direction is established, either a “wait or see” posture or swift scalps should be preferred.
On the Upside 19,550-19,800 remain strong resistances. However, there is a new addition at the 19,950 level, where the declining channel resistance is also visible. Furthermore, the 3-Day EMA-26, which is now at 20,500, is slightly above these levels. This region is heavily congested, putting bulls in a tight position. However, a break over this level will push the price up to 20,790, followed by 21,850.
The Downside remains unchanged, with both Fibonacci-based support levels remaining in place. Initial supports are still in place at 19,075 and 18,850. There is channel-based support in addition to Fibonacci-based support. As a result, these price supports are crucial. These supports will be difficult to break as well, but if they do, Bitcoin will be exposed back towards the 18,400-18,100 zone.
