4-Hour Analysis:
Big Picture: Bitcoin’s volatility has been dropping since early July, and it has recently reached an all-time low. Volatility did not improve in yesterday’s session, as price continued to stick to the thin range levels. The ongoing ranging conditions have proven to be rather tough for any of the players to break free from, while any event trigger might be important in breaking free from the current range levels.
On the Upside the weekend squeeze above 29,525 remained an excellent opportunity for buyers to capitalize on, but they failed, resulting in significant profit-taking rounds. The price is still under pressure from the resistance levels of 29,525 to 30,000. Bulls have been unable to regain this level since July 24th, resulting in low and dry volumes. Furthermore, bulls are unlikely to charge aggressively unless they reclaim these key levels.
On the Downside the pressure has been gradually mounting as the price remains heavy around the resistance levels. Although the price is still holding at 29,125, the emerging pressure is likely to weaken these supports and expose Bitcoin towards 29,010 to 28,940 levels, where some short-covering can be expected, but if pressure persists, the major support levels at 28,850 to 28,650 are likely to be exposed, and are likely to be under increased threat of breaking.
