1-Day Analysis: Big Picture: Yesterday’s session began with weakness, dragging the price back towards the weekly supports. However, the bulls stepped up at the ideal time and forced a recovery while nearly closing the session around the opening of the day. While higher time-frame dynamic resistances are leaning towards the downside at a faster pace, the lower time frame is progressively establishing bullish divergence. Prices may see higher volatility between levels in the sessions to come.
On the Upside intraday resistance levels stay solid initially at 26,220 and 26,390. These levels have effectively ruled out any further rounds of short-covering for Bitcoin. On the other hand, the appearance of bullish divergence on the lower time frame may provide some short-term momentum for the bulls to post a bearish retest of higher levels around 27,125, followed by 27,850. However, strength above 26,400 remains pivotal for price to head any higher.
On the Downside the weekly supports have once again halted the intraday sell-off, forcing a significant rebound. This implies that weekly supports continue to have a significant presence of demand, and that whenever price tries this zone, bulls are likely to defend it. While for sellers to maintain their dominance on the charts and drag price down towards further lower supports, they must break through this supportive territory.
