4-Hour Analysis:
Big Picture: Bitcoin is confined within the consolidation zone, but that range has seen some extension to its edges. The range is currently between 52,800 on the upside and 50,800 on the downside. Meanwhile, since the overall trend stays sideways, price has been looking for liquidities on both sides. In yesterday’s move, the price pushed for the liquidity existing above the 52,800 mark and successfully grabbed it, and it is now preparing for lower liquidity. Volatility is expected to remain as long as current ranges hold.
On the Upside price rose over 52,550 in the middle of the day and again firmly challenged the 52,800 barrier, which was partially broken; however, the strength was insufficient for the bulls to trigger an extended breakout eventually resulting in mid-day profit-taking. The session has added resistance at 51,550 for the day, followed by 52,550 and 52,800 levels. A sustained hold over 52,800 expands the upside once more.
On the Downside sellers are firmly testing the 51,250 support level. They were able to partially pull the price below this support level, but the candle closure is still awaited. No candle has been able to close below his support in a convincing manner since February 14th, demonstrating the support’s durability. Once again, as the price fell to this level, volumes immediately improved, indicating that short-covering and fresh purchasing was taking place. However, maintaining this support is critical; else, the price may go lower towards 50,400 to 50,200 levels before posting any recoveries.
