BTC-“Watch-Out for Short-Coverings”

4-Hour Analysis:

Big Picture: Price continues to fall as sellers continue to seek lower levels. The liquidity zones are still untested and might be a significant target for the bears. However, these liquidity levels have been important support levels for more than 50 trading sessions and may surprise late sellers as well. Volatility is predicted to intensify in the coming hours as prices test an extremely significant level.

On the Upside Bitcoin is still facing significant resistance between the 28,100 and 28,390 levels. Yesterday’s initial push into this barrier was met with quick rejection, sending prices back lower. This continues to be the session’s principal barrier. Surpassing these levels would allow for a return towards the 28,800 to 29,075 range.

On the Downside as price fell below the EMA-100 support line, there was a sharp plunge that drove Bitcoin lower. The 27,450 level is now providing some support to the price. Below this, the next level of support is at 27,050, followed by the liquidity zone between 26,650 and 26,530. This zone has been untapped for some weeks, and testing it may result in aggressive short-covering as well as fresh buying. As the price approaches this zone, sellers should exercise caution.