Technical Analysis for BTCUSD for 1st July 2022
Bitcoin is Fragile, BTC Crashing Below $20k Swings Price Action for Bears
Past Performance of BTC
Bitcoin closed in red in June following sharp reversals on June 30. With a clearly defined trend and prices trading within a bear breakout formation in higher time frames, BTC may post more losses in the days ahead. Currently, BTC is down three percent versus the USDT and below the psychological support level of $20k.
Bitcoin Technical Analysis
From the daily chart, bears are in control following losses below $20k and $19.5k on June 30. Furthermore, the failure of bulls to tame bears, dropping below the $20k level, points to strong liquidation pressure. This is regardless of buyers of early July 1.
Accordingly, even though buyers may expect a refreshing recovery as per today's hints, the probability of more losses is high. The retest of $22k, coinciding with the 78.6 percent Fibonacci retracement level and pullback at the back of rising trading volumes from June 26, suggests weakness on the side of buyers.
Based on this setup, traders may find unloading opportunities on every high towards June 30 as sellers target 2022 lows at $17.6k in the short term. Conversely, any upswing above $22k will nullify this bearish preview.
What to Expect from BTC
Bitcoin is under pressure at spot rates and could register new 2022 lows if sellers press on. As per the formation in the daily chart, the immediate resistance levels stand at June 30 highs and $22k on the upside. An unexpected rally above $20.3k, on the other hand, could see BTC float higher.
Resistance level to watch: $20.3k
Support level to watch: $17.6k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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