1-Day Analysis:
Big Picture: Throughout the weekend, price remained entirely flat, with extremely narrow movements. The RSI indicator indicated that Bitcoin was losing momentum in its sluggish and choppy ascent. This has brought the price under pressure, and it is presently testing the EMA-50 support level. Sellers are expected to maintain the upper hand in the near term trend, while buyers must push prices back over 23,800 at the very least to counteract this growing selling pressure.
On the Upside the price is encountering initial resistance at 22,490, followed by 22,550. Above this level, the next resistance zone is between 22,650 and 22,800. Upon re-testing this area price is anticipated to trigger significant intra-day profit-taking and could potentially bring in fresh selling pressure. However, if price can re-establish acceptance above this range, it will at least partially ease selling pressure and push Bitcoin higher into the 23,200 to 23,400 zone, and perhaps as high as 23,750.
On the Downside price is hitting the important daily support range of 22,380 to 22,300. This area provides support from both horizontal and dynamic inputs. Breakdown of this support region would send price into lower support at the 22,140 level. This is another critical support level that has kept aggressive sellers at bay. All of these supports that are positioned in a narrow range must be held in order to prevent additional price declines. As a result of losing these supports, Bitcoin could fall towards 21,790, and potentially as low as 21,550.
