Big Picture: After several sessions that were mainly range-bound, price tested the EMA-200 support level and then strongly reversed. Not only did it turn around, but yesterday’s move also saw a strong continuation. Price nearly closed the candle at highs as session closed, indicating that buyers’ interest and strength are still intact. However as long as the EMA-200 and 22,800 levels hold, the conditions may continue to be choppy and volatile.
On the Upside despite yesterday’s strong session, price was still constrained by the 22,300 resistance level. This point was emphasized as a significant intra-day resistance level for Bitcoin. Price is still below this resistance level and must move over it in order to move higher and reach the next resistance level of 22,800. This level is even more important and stronger than the prior level. Furthermore, a foothold above this level significantly increases the likelihood of completion of corrective phase.
On the Downside the 21,890 and 21,550 support levels have lived up to the potential. These support levels are still strong and preventing further declines in Bitcoin. Additionally, the presence of EMA-200 at these levels strengthens and increases the significance of this supporting zone. Price could push back into higher levels as long as it keeps onto this area. However, if sellers actually manages to break through this area, the downside phase will resume and initially aim for the levels of 21,370 to 21,110.