BTC-“Re-Tests Inbound”

1-Day Analysis:

Big Picture: Yesterday’s session went just as anticipated. Bulls took a break from daily resistance levels, triggering profit-taking. However, the bulls’ latest surge has built a higher high formation which remains to be another addition towards the short-term bullish counts, and going forward, the bulls should either establish a consolidation range or test lower support levels before continuation towards the upside. Furthermore, as long as bulls control the short-term trend, an AB=CD corrective pattern is expected.

On the Upside the daily EMA-50 at 23,380 is a major resistance level. Reclaiming this level will be a significant milestone for the bulls, keeping the current momentum on track towards higher levels. The next level of resistance is obvious at 24,300, followed by the 25,000 level barrier breaching, which opens the upside towards 26,250 as next upside target.

On the Downside for the previous several hours, 22,850-22,650 has been serving as a very solid support level. The next two supports are at 21,950 and 21,350. Bitcoin, on the other hand, has significant supports between 21,000 and 20,750. These levels are critical for bulls to hold in order to keep the recovery on track. Furthermore, in order to make another higher low formation, price must retain these supports and initiate a significant recovery from the above mentioned support levels.