8-Hour Analysis:
Big Picture: Bulls make a spectacular comeback to the charts. Price recovered the 19,800 level and broke out of the range aggressively. As strength increased over 19,800, a sling-shot effect was evident in the form of aggressive short-coverings. Following yesterday’s advance, Bitcoin has gained tremendous ground. Furthermore, with present conditions, considerable profit-taking along the way remains essential. Consolidation at current levels, however, favors bulls.
On the Upside a few resistances have been broken. The levels of 20,550-20,790 are now holding back the price surge. This is still a significant intraday resistance level. Partial profit-taking is likely to be observed here. Furthermore, with lower-time frames that are overheated, a short consolidation phase cannot be ruled out. Strength over this level will lead Bitcoin towards 21,200, followed by 21,850 which is another critical level.
On the Downside support levels of 19,800 have been reestablished. For the past few weeks, this level has served as a very crucial S/R level. Price remaining above this will support bulls, while price remaining below this will favor bears. As long as these supports hold, the downside is shielded; but, losing them would enhance the possibility of extended decline, initially towards 19,250, then 18,900, and eventually down to the 18,400-18,100 range levels.
