Big Picture: Bitcoin’s volatility index is once again approaching support levels, which might spark some better swings in the next hours. Furthermore, the volatility index has been extremely unpredictable in recent weeks, resulting in a mix of swift and sluggish moves. Going forward, Bitcoin’s price may become more volatile in the near term as it becomes limited in a narrow range with important weekly supports below and the trailing EMA’s above which continue to apply pressure on the price. This might result in another slingshot effect, in which price tends to target liquidity on both sides.
On the Upside overall the weakness still persists and bulls would need something special to overturn this mounting pressure. The immediate resistance levels are still standing firm at 25,960 and 26,125 levels. Above them price has another resistance range between 26,350 to 26,550. Nevertheless, multiple important resistances remain above this zone at 27,125 and 27,815 levels. These are the levels that bulls must break over in order to not only stop the selling but also to regain some bullish momentum.
On the Downside currently, the pressure is still present, and sellers are resisting any rounds of short-covering. They might probably drive price towards the weekly support area of 25,250 to 24,850 levels if they are able to overpower any bullish strength. Testing the weekly supports could lead to significant short-coverings, thus closing shorts around this range is strongly encouraged. Meanwhile, the session intra-day support of 25,620 is still active.