4-Hour Analysis:
Big Picture: The big sell-off was triggered by the breach of the trendline support and bearish flag. It was earlier stated that losing intraday support would expose Bitcoin towards the previous All-Time high levels. A deviation below this level is currently visible, and if price can maintain this level, a short squeeze remains quite likely. As a result, late sellers should exercise risk management.
On the Upside a falling channel resistance is beginning to form. Breaking this could trigger a powerful wave of short-coverings, with the first target being 20,400, followed by 20,765. These were formerly firm supports and are now likely to operate as powerful resistances. However, breaching these would lead to the upside once again towards 21,200, followed by 21,750, and could continue the upside into 22,200.
On the Downside the sell-off shattered all support levels before settling for support at the 19,800 level. This level has shown to be a powerful support level for Bitcoin once again, and it is now holding the prices. As long as bulls can maintain this level, additional downside risk is contained; however, losing this support would expose price to 19,200, followed by 18,950, and could potentially extend the decline towards 18,200-18,000.
