1-Day Analysis:
Big Picture: Bitcoin begins another session under pressure. Buyers haven’t yet stepped forward, leaving space for further selling. Price is now on the edge of breaking a couple of key supports, but there are still a few more below. This price-supportive zone is important, since losing it would trigger even more aggressive selling. On the other hand, if the price remains in this zone for a little longer, intra-day short-coverings are anticipated. Expect increased volatility in the next hours and sessions.
On the Upside following yesterday’s session, several intra-day resistances have been established. The initial resistance level is now 22,145, followed by 22,360, where the lost trendline support is expected to operate as resistance. Regaining the 22,300-22,360 zone will assist in easing down the present intense selling pressure. Additionally, reclaiming this level can stretch the short squeeze into 22,490, 22,550, and possibly 22,800. This is where intraday profit-taking is anticipated, while strength over 22,800 is required to extend upside any further.
On the Downside Bitcoin is now just a few cents away from hitting the 21,790 support level. This level is secured by both the horizontal and dynamic support of the EMA-200. Price is showing signs of intraday short covering near this support level. But, holding this support is also important; otherwise, another strong sell-off could develop, with the initial aim being 21,550, followed by 21,350. Furthermore, losing EMA-200 would be a significant blow for the bulls.
