4-Hour Analysis:
Big Picture: As recently mentioned, holding the prior All-Time high support level would benefit bulls with significant rounds of short-covering. The overall trend played in line with expectations. Going forward, these spikes are being powered by short-coverings, but in order to attract sustainable buying interest, Bitcoin must maintain above 21,750 and gain momentum.
On the Upside a breakthrough of the trendline resistance triggered a breakout, causing prices to rise towards 20,400. Bitcoin is currently striving to build a foothold over 20,400. Gaining momentum over this level will open the door for 20,765, 21,200, and 21,750. Expect profit-taking at these levels, although price would need to hold above 21,750 to initiate the next phase of excitement. This would take prices towards 22,200, then 22,800, and eventually towards 23,450.
On the Downside the main support level remains intact at 19,800. Additional downside risk is contained as long as this level holds; however, losing this support will expose price to 19,200, followed by 18,950, and could perhaps extend the drop into 18,200-18,000.
