Technical Analysis for BTCUSD for 5th July 2022
Bitcoin Flashing Green, BTC Finds Support and Rallies 6%
Past Performance of BTC
Bitcoin flashed green on June 4, adding six percent versus the USDT in the last trading day. This reversal is a net positive for optimistic buyers and is from around $18.9k, marking last week's lows. Traders should watch today's price action closely since a follow-through could see BTC break above the middle BB and even $21k in the short term.
Bitcoin Technical Analysis
Technically, sellers are in control from an effort versus results perspective. BTC has local support at $18.9k and is bound within the July 1 bear candlestick. This will, however, change once there is a clean close above $21k in confirmation of July 4 gains. In that case, sellers of last week will be nullified, paving the way for BTC bulls targeting $22k. Risk-averse traders can wait for a clear confirmation above the $22k or $18.9k and $17.6k on the lower end, depending on the trader risk profile, before committing. A break below last week's lows in alignment with the losses of July 1 could force BTC to new 2022 lows.
What to Expect from BTC
While current formation is positive, the coin's price action is in a tight trade range with relatively low trading volumes. Based on the candlestick arrangement in the daily chart, last week's lows mark the immediate local support. If broken, the coin could quickly sink to register new 2022 lows.
Resistance level to watch: $22k
Support level to watch: $18.9k
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