4-Hour Analysis:
Big Picture: The range-bound environment has continued over the weekend. This prolonged consolidation phase is now causing dryness in both the price and the volume. Meanwhile, the structure is likely pointing to a falling wedge pattern, although bulls are going to take the burden of the move in the following hours and days. Meanwhile, if they fail to step up in the next days, this might be interpreted as a short-term exhaustion, perhaps leading to profit-taking.
On the Upside over the weekend, resistance levels of 51,900 to 52,000 limited the price potential. The price challenged these resistances twice, and both times a long upper shadow was noticed, indicating strong profit-taking in this region. Meanwhile, the session’s primary resistance is at 51,430, followed by the at 51,900-52,000 range levels. Surpassing these would allow for the price to re-test the much greater resistances at 52,550 and 52,800 levels.
On the Downside the price is presently retesting the 50,980 to 50,800 support levels. This supporting zone previously held the price, resulting in recovery rounds. However, the price is slipping back into this range, and these continuous tests are expected to weaken the support levels, perhaps exposing Bitcoin towards the 50,400 to 50,200 support levels. This lower support zone includes both the falling wedge channel support and the 4-hourly EMA-100. As a result, several partial short-coverings might be observed within this area.
