4-Hour Analysis:
Big Picture: Bitcoin tested major resistance levels above, triggering profit-taking, and is now re-testing lower support levels. This will be a significant event for the price since a successful re-test followed by a strong reaction with strength would maintain bulls in command of the short-term trend with higher goals in sight. However, with a number of significant macroeconomic events taking place this week, prices may remain volatile.
On the Upside the first intraday resistance level is indicated at 22,220. The next layer of resistance is visible at 22,650-22,850. Price must break over 22,850 to demonstrate strength and pave the way back to the recent highs. Another minor barrier is indicated between the current high is 23,420. Above this, we have recent highs at 24,300, followed by 25,000 mark, breaking which opens the way to 26,250 as the next upside target.
On the Downside the first level of support is being tracked at 21,775. The next level of support is indicated at 21,350. In addition, Bitcoin has solid supports spanning from 21,000 to 20,750. Bulls must sustain these levels in order for the recovery to continue. Furthermore, in order to establish another higher low formation, price must maintain these supports and launch a significant recovery from the above- noted support levels, failure of which would send Bitcoin back to the prior range.
