Big Picture: Over the weekend, Bitcoin continues under severe selling pressure. Buyers were unable to counteract the pressure despite several attempts to initiate a wave of short-coverings, and any signals of relief was soon matched by aggressive sellers. However, a number of strong supports are going to be challenged, which may result in short-term breather. Going forward, active risk management is advised, as are short-coverings at any indication of weakness.
On the Upside price has now taken a significant rejection from the trendline level, triggering a new round of selling. The session’s initial resistance is at 27,400. The session’s main selling presence is seen near 27,800 to 28,000 levels. Surpassing this level could spark a significant wave of profit-taking, driving prices higher into the 28,750 to 29,075 range.
On the Downside Bitcoin is positioning to retest the support levels that set up the previous bullish leg. This supportive region is found between 26,600 to 26,200 levels. However, above them, 27,200 remains a solid support level. Furthermore, this region likely to attract new buyers as well. The next supporting zone below this is the breakout-based region, which now has additional protection from the macro EMA supports of 200 and 250.
