1-Day Analysis:
Big Picture: For the past 12 trading sessions, price has maintained a tight range. The range remains relatively narrow as volatility falls. Bitcoin’s volatility index is currently approaching that of Covid times. This demonstrates that price action in general has been effected and remains complicated for the most part. Furthermore, such scenarios typically indicate a change of hands for the smart money.
On the Upside over the weekend, the EMA-32 was tested several times, but it held firm and rejected any price gains above it. This was previously identified as a key resistance level, and unless it is breached, the upside will be limited. The EMA-32 is currently operating at 17,225 level. Above this, the next resistance is at 17,500, but major resistance is seen between 17,620 and 17,640.
On the Downside Bitcoin is seeing multiple supports between 16,900 and 16,700. This area has been holding strong for nearly two weeks. If these supports can hold for a few days longer, it will exhaust the sellers above and lead to a price squeeze higher. If these supports are breached, Bitcoin will likely head lower towards 16,550 and 16,230, with a deeper pullback also possible.
