Technical Analysis for BTCUSD for 4th November 2022
Bitcoin Finds Resistance at $21k, BTC Bulls Stand a Chance
Past Performance of BTC
Bitcoin is up 12 percent from September lows and the uptrend is firm following early today gains. From the daily chart, buyers are adding to their longs and building from the $20k support. As it is, the immediate support is at $20k, with a high chance that the uptrend will continue if there are encouraging gains above $21k and last week’s highs in the immediate term.
Bitcoin Technical Analysis
The path of least resistance, from a top-down preview, is southwards. There are signals of strength at spot rates, but the failure of buyers to double down, lifting prices above $21k, is a concern. Analyzed from how prices have been performing in the past few days, BTC has resistance at around the 61.8 percent Fibonacci retracement of the August to September 2022 trade range. This boxes BTC in a bear formation, in alignment with losses from mid-August to late September. Buyers will flow back if BTC surge above $21k and last week's high. In that case, Bitcoin may expand to $23k in a relief bounce. If not, losses below $20k may fast-track the dump, accelerating the free-fall back to $18.5k in the short term.
What to Expect from BTC
Bitcoin buyers are confident. Still, BTC is yet to close $21k, and associated volumes are thin, reading from the daily chart. For buy trend continuation, Bitcoin prices may surge above $21k with rising volumes, confirming gains of October 25.
Resistance level to watch: $21k
Support level to watch: $20k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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