1-Day Analysis:
Big Picture: Another dull session for Bitcoin, with little price movement on offer. Since Friday’s sell-off, volatility has reduced dramatically. This has resulted in rather flat trading price activity over the previous few sessions. Nevertheless, the sideways consolidation has pushed the oversold indications back into neutral territory. This development has cleared the way for any potential selling to take place. Bitcoin continues to remain weak as oscillating indicators weaken further. To negate this mounting pressure, Bitcoin must surge back above the 23,800 threshold.
On the Upside much stays same, with initial resistance remaining around 22,490, followed by 22,550. Yesterday’s intraday advance was capped by the intraday resistance level of 22,550. This level will continue to provide intraday price resistance. The next resistance zone above this level is between 22,650 and 22,800. This is another heavy price zone where severe intra-day profit-taking is possible. Furthermore, the probability remain slim; but, if Bitcoin establishes strength above 22,800, it may see fresh upward push into the 23,200 to 23,400 levels, followed by the 23,750 zone.
On the Downside Bitcoin is still hovering around the 22,380 to 22,300 support zone. This region, together with the trendline support around 22,200, remains vital for price. Bitcoin needs to retain these support levels in order to avoid further selling. As a result of losing these supports, Bitcoin is anticipated to fall lower into the 21,790 to 21,550 range.
