4-Hour Analysis:
Big Picture: Following a severe rejection from the previous range high, Bitcoin experienced another profit-taking situation, nearly dragging price down into lower support levels. Bitcoin is currently trading in a narrow range, and the direction of the breakout is critical for the next trending move. Continuous failures from the above area might result in a deeper and larger pullback for Bitcoin, but a stronghold back into the prior zone would call for additional bullish continuation.
On the Upside for the time being, 29,525 remains the immediate and powerful barrier. This level now coincides with the EMA-200 level, making it an even more important level to break through. Above this, the next significant resistance zone is between 29,800 and 30,000. Bulls must regain and maintain above this area for bullish momentum to resume.
On the Downside price plummeted considerably lower after losing the 4-hourly EMA-50 level and nearly went on to test the main support levels again. However, the price is just marginally above the support levels of 28,850 to 28,650. This supportive level has previously stopped price from falling lower and is anticipated to do so again. However, the level’s strength is likely to be undermined if bulls fail to build a stronghold over the 30,000 mark. The next supports below this zone are around 28,400 to 28,300 levels, followed by 27,700.
