8-Hour Analysis:
Big Picture: The current consolidation is forming a symmetrical triangular pattern. This is generally one of the continuation patterns seen following a significant shift. However, this does not necessarily result in a continuation phase. Overall, given the current conditions, the price action remaining sideways cannot be ruled out either. For sellers, neutralizing any advances beyond the daily demand zone would maintain them in control of the trend, whilst for bulls, pushing price beyond the demand levels would result in the development of fresh momentum.
On the Upside Bulls have consistently failed to show any sign of strength to test the prior demand zone, which is presently serving as an immediate strong barrier between 26,350 and 26,690. Furthermore, the trailing EMA’s are rapidly approaching this resistance zone, making it more difficult for the bulls. However, if a surprise move is established and price reclaims these levels, momentum is expected to improve, potentially triggering panic short-coverings towards 27,125.
On the Downside on an 8-hourly time-frame, there is an initial support level at 25,880. Below this, intra-day support exists at 25,820 and 25,630. The support level of 25,630 almost coincides to the trendline-based support. Despite this protection, Bitcoin is still vulnerable towards the weekly support levels ranging from 25,280 to 24,830. These are very strong and important supports that must hold on a weekly basis in order for the price to avoid any deeper pullback.
