Big Picture: Yesterday, after a few sessions of gain, Bitcoin started the session with good momentum, but that strength dissipated when price tested the 4-hourly supply zone. As profit-taking pressure increases, the current session begins with intra-day stress. Bitcoin may drop further to re-test immediate supports before any continuation to the upside.
On the Upside Bitcoin reached the next target zone and was met with aggressive profit-taking. This target region has abundant supply, which is expected to impede price movement. The initial resistance level has been reset at 17,950, followed by 18,250 and 18,640. These are difficult levels to surpass and will require even greater strength from buyers to surpass them.
On the Downside June’s low is now serving as a firm support level. After several attempts, buyers were able to transform this level into support. This level was also stated previously to limit any initial sell-offs. However, if this level falls further, Bitcoin will have more room to fall. Before any substantial reversals, price may potentially re-test 17,350 and fall as low as 17,130 to 16,950. To negate the corrective scenario, Bitcoin needs to get back above 18,250 at the minimum.