8-Hour Analysis:
Big Picture: For the previous session, Bitcoin remained in profit-taking phase. However, there is little cause for concern as long as Bitcoin maintains the 19,800 level on a daily closing basis. Prices will remain bullish in the short term if it remain above this level. Furthermore, price may re-test this support in search of confirmations. A successful re-test followed by a strong bounce would leave a positive impression and invite further aggression from buyers in upcoming sessions. Pressure buildup below 19,800, on the other hand, would return the short-term trend to neutral.
On the Upside price attempted to breach the 20,550-20,790 range levels but was rejected and was unable to reclaim them. This region has been re-established as the session’s initial resistance. This has yet to be completely breached. However, the next resistance is a channel-based resistance at 21,060-21,240. As long as this resistance region holds, the upside will be slow; however, to accelerate, price must break above it. If this is accomplished, Bitcoin will move next towards 21,850.
On the Downside the 50% Fibonacci retracement level at 20,130 is currently functioning as a good support. The next level of support is at 19,920, which represents a 61.8% retracement. Furthermore, the 19,800-19,550 support region must hold on a daily closing basis to maintain this momentum. Losing this support region would have an impact on the current momentum.
