4-Hour Analysis:
Big Picture: Sellers were able to seize untapped liquidity at lower levels. Since then, a corrective phase has been tracked, which has been pushed mostly by the short-coverings. Previous reports highlighted that as the price entered a supportive range, aggressive short-coverings could be observed, and late sellers were recommended to monitor aggressive risk management.
On the Upside Bitcoin has regained liquidity levels of 26,530 and 26,650, resulting in rounds of short-covering. However, Bulls are still far from acquiring any sustainable momentum, and that current advance could be driven solely by short-coverings. The primary resistance level for the day is at 27,415. This level features both horizontal and dynamic resistance. Price climbing above this level would favor further upside, which would likely push price higher into 27,950 and 28,300.
On the Downside support levels of 26,650 and 26,530 have been restored. If these levels are re-tested, they are expected to provide strong price support. At these levels, short-coverings might be observed once more. If these supports are breached again, then price will re-target lower levels in the range of 25,800 to 25,500. This is where strong demand remains and will almost certainly draw fresh buyers.
