4-Hour Analysis:
Big Picture: Any positive reaction has yet to be seen, but sellers are continuously charging and breaching intra-day support levels one by one. Sellers will likely maintain short-term control as long as Bitcoin trades below 16,920, and they are currently targeting lower intra-day support levels in the coming hours.
On the Upside price has begun to undermine previous support and is now re-testing it. If this level is not reclaimed, it will serve as the session’s initial resistance at 16,520. Above this, the next level of resistance will be seen at 16,800. Both of these levels will pose intra-day difficulties for the price, but the major hurdle remains around 16,920. Unless and until this level is breached, Bitcoin’s upward potential is likely to remain limited.
On the Downside the price is on the verge of breaking through the 16,520 support level. If price begins to encounter rejection on re-tests, it is likely to fall much further into the lower support zone of 16,250 to 16,180. This level is now likely to prompt aggressive short-covering and may even attract intraday fresh buying. A short-term relief is remains likely if this support is re-tested.
