3-Hour Analysis:
Big Picture: Buyers’ inability to establish strength kept sellers in command. Nevertheless, sellers maintained their edge over the charts and went on to breach major intraday support levels, resulting in another strong sell-off. On the higher time frames, the momentum indicators continue to suggest signs of weakness. However, a key support level of EMA-200 on a daily is set to be tested once more. The previous test of this EMA resulted in a strong rally to the upside, hitting the 25,200 mark. This will be an important re-test for the next impulsive action. Bulls must maintain this level or else additional downside will be revealed.
On the Upside Bitcoin now has a slew of intraday resistances. Initial resistance will now be encountered at 22,650 to 22,800 levels. Price is expected to create fresh supply at the 22,800 level, posing challenges for buyers to break on initial attempts. Moreover, this will be a significant benchmark level, as price must re-establish strength above this mark in order to ease the selling pressure. This would probably lead to a strong short squeeze aiming for 22,980, followed by the 23,200 mark once more.
On the Downside loss of the trendline and lower-time frame EMA support resulted in a major sell-off that shattered nearly all intra-day supports in between. Price eventually retested the 22,000 level before recovering and closed the candles back above the 22,400 to 22,300 mark. This has kept the intraday support levels of 22,400 and 22,300 intact. The next intra-day support level below this level will be at 22,000. These are impressive intraday supports that will certainly take on a great deal of selling pressure. Nonetheless, the major supports for the session remain around 21,770 in the shape of the daily EMA-200 level, followed by 21,550. Whenever these levels are tested, expect strong short-coverings.
