1-Day Analysis:
Big Picture: Failure to break through 16,900 has triggered yet another profit-taking event. This was a necessary level to switch in order to maintain the short-term optimism. Going forward price is heading lower to re-test intra-day supports. Bitcoin must rise above 19,800 in the coming days to escape from this building pressure, or else another drop lower is likely due to the emergence of a bear flag pattern.
On the Upside the 16,800 to 17,100 range proved too difficult for price to flip in its initial attempts. Intraday resistances are now back between 16,215 and 16,330. Above these, there is significant resistance between 16,800 and 17,100. If this is broken, the upside can be extended towards 17,500 and possibly towards 17,950. Back-to-back daily session closings above 17,620, on the other hand, could be a very encouraging sign.
On the Downside the initial wave of support is seen between 16,130 and 15,970. These are the 50-61.8% Fibonacci retracements of the recent price increase. Holding onto these supports will favor an intra-day reversal, but if they are breached, the downside is likely to extend even further towards 15,790, then 15,630 levels. These are the most recent lows, and holding onto them on daily closings is critical.
