8-Hour Analysis:
Big Picture: Price went below the EMA’s protection, causing a sharp decline in prices. Price, on the other hand, is rebounding back and aiming to recoup the lost EMAs. The retest is likely to be vital, as failing to reclaim the EMA sets would confirm the breakdown, perhaps extending the downward even further, whilst recapturing the EMA sets would nullify any immediate selling and bring back price to the triangle pattern formation.
On the Upside the prior support zone is now forming as strong immediate opposition. The EMA set of 200 and 250 will serve as the principal barrier. These EMAs are now at levels of 27,250 and 27,330, respectively. Going forward, this level will put bulls under pressure, but a break above it will enable some momentum to continue higher, since price has grabbed a significant amount of liquidity from lower levels. The next resistance level above the EMAs is 27,500, followed by 27,850. Strength over 27,850 could greatly enhance the short-term outlook.
On the Downside after losing EMA-based support, Bitcoin developed a new level of support between 27,125 to 25,940. This zone of support is now enforcing and leading to a good recovery. This region is expected to serve as strong support for the session, but if price is unable to retake the above critical levels, the slide might extend back into the 26,600 to 26,500 levels, with potential for 26,200 as well.
