Big Picture: Despite having the advantage, sellers have been unable to initiate hyper selling. The weekly support levels present below continue to be a primary factor for this. If Bitcoin maintains these levels for a little longer, a short-covering scenario might develop, causing prices to rise temporarily. Until significant bullish reversal levels are reached, aggressive profit-taking on strength is suggested.
On the Upside early resistance for Bitcoin is around the 26,200 level, followed by the 12-hourly EMA-200 at 26,470 and 26,600. These are severe intraday resistances that will almost certainly make things difficult for the bulls. However, re-establishing acceptance above them would drive a larger wave of short-coverings, pushing prices higher into the 27,230 range and perhaps as high as 27,600 to 28,000 levels.
On the Downside Bitcoin has very strong supports ranging from 25,200 to 24,900. These levels also correspond with the weekly breakout levels. Price may be unable to break through these levels on early tries, indicating that this zone has the potential to spark significant short-coverings. Sellers’ charge is unlikely to continue until they succeed in breaking through these supports. Successfully breaking through this supporting zone would expose Bitcoin towards 23,500 and towards 22,800.