Technical Analysis for BTCUSD for 2nd September 2022
Bitcoin Downtrend Clear, Dips below$19k will Trigger Selloff
Past Performance of Bitcoin
Bitcoin prices are stable when writing, down six percent in the last trading week. Even though prices dropped the previous week and the primary trend established as southwards, the inability of bears to confirm losses swings favorably for buyers. However, this can only show if prices expand above $21k, thrusting prices into the August 26 trade range.
Bitcoin Technical Analysis
BTCUSD is moving within a tight trade range, above last week's lows at around $19.5k, and with light trading volumes. Overall, prices have been stable in the past 24 hours. Nonetheless, relative to the lower BB, there are encouraging higher highs as the downtrend's momentum fizzles out. Technically, considering the emerging formation, risk-on traders may wait for a clean breakout. Losses below this week's lows, ideally with rising trading volumes, may dent bulls' hopes, forcing BTC towards $18.5k. Conversely, gains above $21k may trigger demand, laying the base for a leg up towards $23.5k in a possible retest, typical of a bear breakout formation.
What to Expect from BTC
Sellers are in a commanding position. Still, this week's bounce may slow down the southward momentum, favoring buyers. Any break below $19k may fan bears, leading to even more drawdowns.
Resistance level to watch: $20.7k
Support level to watch: $19.7k
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