Technical Analysis for BTCUSD for 19th October 2022
Bitcoin remains highly volatile inside a $2.5k Trade Zone
Past Performance of BTC
Bitcoin prices are both hot and cold at spot rates, per the volatility in the daily chart. Notably, the gains from the tail end of last week have been quickly washed off following losses on October 18. The bar is bearish and engulfing, reversing progress made. However, compared to the performance of the October 13 bull bar, volumes have tapered. This means yesterday's drawdown is with lower participation levels. Therefore, it means the dip won't last long unless there is a follow-through.
Bitcoin Technical Analysis
The bearish engulfing bar of October 18, as mentioned earlier, pushed BTC back to last week's trade range. Bitcoin is also within a bear breakout formation, trending below the bear flag established in the last trading sessions of September and early October. Since trading volumes are lower, buyers have a chance if prices are within the October 13 bull bar range and, most importantly, above $18k. Only confirming gains above $20.5k may signal buy trend continuation, opening opportunities for risk-averse traders. If not, losses below Q3 2022 lows may dampen the current momentum, opening the door for further liquidations.
What to Expect from BTC
Traders can stay on the sidelines until a clear trend emerges above the current $2.5k range. Thus far, BTC is highly volatile with no defined short or medium-term trend. From the top-down preview, sellers remain in control, which could continue if Bitcoin bulls fail to break above $20.5k.
Resistance level to watch: $20.5k
Support level to watch: $18.k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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CryptoAltum does not accept any clients under the age of 18.