1-Hour Analysis:
Big Picture: Bitcoin had a minor relief rally as it reached historic support levels. It was also indicated that indications on lower time frames were highly oversold and needed a breather before any possible re-set. A possible bullish pattern in the shape of an Inverse Head and Shoulders might be emerging in the coming sessions. However, the pattern is still in its early stages and need further input before it can be considered valid. Furthermore, price is currently stuck between significant resistance on the upside and extremely strong historical supports on the downside. As a result, we anticipate more volatility, which might lead to another market consolidation phase.
On the Upside the initial resistance levels are 21,700, followed by 22,800. Above that, we have a supply area ranging from 23,000 to 23,250. Price must break over this level in order to open the door to additional upside in the coming days. A good breakout over 23,250 would most likely drive price to 23,700 and then to another supply near 25,000-25,600.
On the Downside, Another day, and Bitcoin avoids a daily close below $22,000. Furthermore, the price is trading below 22,000 once more and is closing in on lower support levels. Initially at 20,850 breaking which could take price towards recent lows once more. Prices are again under pressure as they attempt to breach below the 22,000 level. If bulls can maintain this level for a bit longer, bears may become exhausted. If not, Bitcoin is poised to challenge its 2018 All-Time High of 19,797 in the coming sessions and may dip into the 20,000-17,000 demand zone.
