4-Hour Analysis:
Big Picture: The session was quite turbulent, but the range lows once again limited the downside and pulled a powerful reversal. Lower-band supports have kept aggressive sellers at bay. Furthermore, the latest unsuccessful downside effort has printed a bullish divergence; therefore, bulls must capitalize on this chance by regaining the important level of the previous All-Time High (ATH), which will serve as confirmation of a change in hands. Successfully regaining the prior ATH may open the door to further upside for Bitcoin.
On the Upside in yesterday’s session, 19,550-19,800 provided another firm rejection. If bulls want to advance to higher levels, they must first clear this level. This level continues to represent the session’s initial resistance level. The next level of resistance is expected at 20,400, followed by 20,900. The breach of 20,900 will open the door for 21,800 to follow.
On the Downside the support range of 18,250-17,950 is proving to be quite strong. It has twice held a possible breakdown, and both times it has also pulled quite powerful reversals. This is still a significant level of support for Bitcoin. As long as this levels hold, there is a good likelihood of an aggressive short squeeze. However, losing this zone will expose Bitcoin to the lows of June, which must be held if greater penetration is to be avoided.
