1-Day Analysis:
Big Picture: Yesterday’s session endured high volatility, with bulls initiating heavy rounds of short-coverings, backed by lower time-frame bullish divergence. Price, however, quickly calmed off after hitting the resistance levels, indicating that bulls are still not in a strong enough position to pull out anything significant, as there are no major structural formations to support anything aggressive.
On the Upside After breaking over the resistance level of 26,220, there was a quick squeeze to the upside that quickly broke through the barrier level of 26,390 and took the price as high as 26,800 before giving in to any rejection. Volume were marginally higher in yesterday’s session, indicating that some panic short-covering had occurred.
On the Downside Bitcoin has effectively converted both intraday resistances into support since breaking through them. The initial supports for the session are presently at 26,390, followed by 26,220. These are minor intra-day supports that can withstand partial rounds of selling, however the session’s major supports remain at the weekly support levels of 25,280 to 24,830.
