4-Hour Analysis:
Big Picture: Multiple intra-day hurdle rejections have exhausted the short-term bulls, clearing the door for another re-test into the support levels below. This current dip, on the other hand, has printed a bullish divergence on lower-time frames, showing that indicators are not in sync with the price, suggesting a sign of weakness. However, until price reclaims a key resistance level, this development is unlikely to become significant. For the session, volatility remains expectedly high.
On the Upside previous intra-day support levels are now likely to function as intra-day resistance levels. Initial resistance levels are expected to develop at 28,940, 29,010, and 29,125. Any indication of strength above these levels would allow for a climb to the 29,525 level. Bitcoin continues to confront many significant psychological resistances ranging from 29,525 to 30,000. The 4-hourly EMA-200 is also present between this range.
On the Downside the price has retested the first key support levels of 28,850 to 28,650. This week’s reaction has been weaker than previous week’s. Bulls guarding this support region would be beneficial to them. If sellers are able to breach this support level, the price is projected to fall next towards the 28,400 to 28,300 zone, which also contains the 50% Fibonacci support. As a result aggressive short-coverings can be expected here.
