8-Hour Analysis:
Big Picture: Another session in which the bulls prevailed. After a good run to the upside, Bitcoin is now beginning to move sideways. For the time being, this consolidation suggests further accumulation before the next step higher. This consolidation was also required to prevent indicators from becoming extremely oversold and to absorb any intraday profit-taking. This pullback, however, should ideally be limited around 19,550, since prices falling below this level would cast doubt on the sustainability of the rally.
On the Upside the pressure is close to the 20,550-20,790 range. This zone was identified as a possible profit-taking zone. Going ahead, this will be the price’s immediate resistance zone. Furthermore, in order to maintain bullish momentum, the price must overcome these levels in order to be open for the next upsides at 21,200, followed by 21,880.
On the Downside strong support was shown at the 20,000 level. For the past few hours this level has negated any strong closing below this mark. The next support zone identified below this is at 19,800-19,550. Both of these levels correspond to Fibonacci retracements of 50-61.8%. These supports are key in maintaining this strong momentum. As long as the price remains above these levels, the short-term trend will favor bulls, while a break below these supports would expose Bitcoin to the 19,250-18,900 zone, making the overall trend choppy once again.
