4-Hour Analysis:
Big Picture: The pressure remained throughout the weekend, resulting in tight pricing action. Furthermore, the weekend consolidation has corrected the indicators’ highly oversold conditions. Going forward, Bitcoin is currently caught between high resistances on the upside and enormous supports on the downside. Furthermore, any additional severe selling pressure for the day might result in a change of hands and print bullish divergence. Overall expecting a volatile session.
On the Upside the intraday resistance level is 21,450, followed by 21,700. The next wave of resistance is visible at 22,200, then at 22,450. This will be a significant price barrier. Successfully reclaiming this level will likely trigger aggressive short-covering, dragging upside even further towards 22,800-23,000 levels.
On the Downside strong initial support is seen from levels 20,750-20,400. For the previous several hours, both of these levels have been holding strongly and prompting heavy short-coverings. Continuing to show such strength over the next few hours may exhaust sellers, forcing them to cover their positions. However, if these supports are lost, the next supports will be at 20,000, followed by 19,800. Holding onto 19,800 will be critical to containing another round of panic selling, which might expose Bitcoin to 19,000-18,000 in the upcoming sessions.
