BTC-“Watch-out for Re-test of Supports”

1-Day Analysis:

Big Picture: Bulls eventually surpassed the 4-hourly congestion zones and advanced towards the higher levels. Having said that, price is currently approaching some significant profit-taking levels and may retest lower supports before continuing. Bitcoin has tested the daily EMA-50 for the first time in 90 trading sessions, and as a result, price may struggle to break over this level on the first attempt. Breakout traders must be cautious and aggressive with their risk management, since volatility is likely to return.

On the Upside the daily EMA-50 at 23,410 is providing significant resistance. This will be another price milestone. Reclaiming this level will keep the present momentum going, although failing to clear EMA-50 will cause some profit-taking and a re-test of lower supports. However, the next level of resistance is evident at 24,300, followed by the 25,000 level barrier.

On the Downside the level of 22,850-22,650 will operate as a partial intraday support level, followed by 21,950 and 21,350. However, Bitcoin has solid supports between 21,000 and 20,750. These levels are expected to serve as critical re-testing support levels. Furthermore, price must maintain these supports and trigger a strong rebound from these levels in order to mark another higher low formation.