8-Hour Analysis:
Big Picture: As mentioned in the last post, Bitcoin was positioned for strong short-coverings unless the supports were to be broken. The squeeze was significant, pushing the price back over the 2018 All-Time High. Short-term buyers have regained full control of the trend and should now ideally form a consolidation range before the next move to the upside. While there is certainly possibility for further gains, partial profit-taking should not be overlooked in light of overall market conditions.
On the Upside the session’s initial resistance can been seen at 20,550-20,790 levels. These levels could prompt intraday partial profit-taking. However, if the market begins to persist above these levels, another surge to the upside is anticipated, with initial objectives of 21,650 followed by 21,880 and could potentially further squeeze towards 22,580.
On the Downside fresh supports have been added at the 19,800 level. Price is supported below this level by the 8-Hourly EMA-50 at 19,600. These levels may also function as re-test levels, and the price must be limited here to keep the short-term trend bullish. Although it is unlikely, but if these supports are breached, Bitcoin is expected to fall back towards the support levels of 18,900-18,750.
