4-Hour Analysis:
Big Picture: The believed double bottom formation established on May 25th resulted in a 10% recovery in a few of sessions. However, that corrective move was met with instant rejection and was reversed by the descending trendline channel resistance, pushing price back into lower supports. Going forward, volatility will persist, and sellers will have a short-term edge since buyers have been unable to maintain strength at higher levels.
On the Upside the morning star formation seen on the previous weekly close is also under pressure, indicating that demand at higher levels isn’t yet sustainable. Bitcoin confronts significant resistance at the 50% and 61.8% Fibonacci retracement levels of 27,350 and 29,050. Bulls’ strength over these levels is critical for turning the tide in their favor. The session’s initial resistance is at 27,050, followed by 27,300. The next level of resistance above that is 27,800, followed by 28,350.
On the Downside for a time, the price has been held stable by the support level of 26,800. Below this intra-day support, the next levels of support are around 26,650 to 26,530. This region has served as an effective S/R level. A positive reaction in favor of buyers was created each time the price challenged or regained this level. This support might be challenged again in the near term, and maintaining it would result in intra-day short-coverings and possibly some new involvement. Losing this supporting zone, on the other hand, would expose Bitcoin to the recent lows, with opportunity for further downside.
