Technical Analysis for BTCUSD for 4th July 2022
Bitcoin Slips 9%, BTC Flatlines Below $20k
Past Performance of BTC
Bitcoin prices still range inside a tight $4.6k trade with key reaction points at $20k and $22k on the upper side and $17.6k on the lower end. At spot rates, sellers are dominant, and provided buyers don't step in to plug the bleed, BTC could slump to retest 2022 lows. If bears press on, Bitcoin could easily slip towards $15k in a bear continuation pattern. Thus far, BTC is stable on the last trading day versus the USDT but down nine percent week-to-date.
Bitcoin Technical Analysis
The June 19 bull bar is the current anchor candlestick in the daily chart. The bar has relatively high trading volumes when compared to subsequent bars. At the same time, the BTC price action is within its high low. Because participation levels have been low. Specifically, bears, more than ten days after the June 19 bar was printed, have failed to reverse gains fully. As such, buyers may stand a chance from an effort versus results perspective. In light of this, risk-averse traders may wait for how prices react at around $18k and $20.5k before committing. A rebound from spot rates could be positive and could form the building blocks for the next leg up towards $20.5k. If not, sharp losses below last week's lows may see BTC plunge to $17.6k, fueling even more sell-off.
What to Expect from BTC
Traders are apprehensive, explaining the relatively low trading volumes. Still, the BTC short-term trend would be defined depending on the reaction at $18k to $17.6k. With a BB squeeze clear, any close above the middle BB and $20.5k may ignite demand, buoying optimistic bulls.
Resistance level to watch: $20.5k
Support level to watch: $17.6k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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