Technical Analysis for BTCUSD for 3rd October 2022
Bitcoin Posts a Dismal Performance in Q3 2022, will $18k Hold?
Past Performance of BTC
Bitcoin is still fixed in a tight range, extending a formation clear for the better part of Q3 2022. Although there was earlier optimism and expectation that gains from mid-June 2022 would be extended, the coin plunged from mid-August, forcing the coin to spot rates. Overall, BTC remains bearish and tethered close to 2022 lows. Traders are waiting for a clear trend definition, shaping the immediate term trend. In that case, losses or gains above the past two week's trade range will determine the direction traders will take.
Bitcoin Technical Analysis
Overall, the trend is bearish, led by the September 13 bearish engulfing bar. Sellers are dominant. However, the downtrend is not as rapid as it was before. Nonetheless, it is until there is a clear breakout above $20k or $18.3k before traders can commit. Any follow-through below $18.5k and September lows may, as mentioned earlier, force even more liquidation towards $17.5k and possibly printing new 2022 lows. On a more positive side, there will be refreshing gains if there are gains above $20k, preferably with rising trading volumes, signaling participation. In that case, BTC may mirror the progress of early September.
What to Expect from BTC
Traders are buoyant; some are convinced that the bottoms are in. Despite their confidence, the trend is skewed and supportive of sellers. Going forward, traders may take a wait-and-see approach until after there is a clean breakout in either direction.
Resistance level to watch: $20k
Support level to watch: $18.5k
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