Technical Analysis for BTCUSD for 5th September 2022
Bitcoin Bulls Failing to Sustain the Uptrend, will $19.7k Hold?
Past Performance of Bitcoin
For the ninth straight trading day, Bitcoin prices are boxed inside a tight $1k range, per the performance in the daily chart. Overly, traders are confident, interpreting the divergence from the lower BB as a positive indicator, a marker of strength. Even so, the failure of buyers to expand, racing above $21k and $23.5k, a critical resistance level in the medium term, is technically bearish.
Bitcoin Technical Analysis
Thus far, the failure of prices to edge lower and confirm losses in late August 2022 is supportive of buyers. Nonetheless, as prices are capped in a tight trade range in a possible distribution (accumulation) depending on the breakout direction, the best course of action is to adopt a neutral stance. It is a preview to be considered, especially by buyers who expect gains in the days ahead. If not, losses below $19.7k with rising participation would open up more entries for bears targeting a retest of 2022 lows. If sellers take charge, this formation will confirm the defining bars of August 19 and 20, continuing losses set in motion in April through to June 2022. On the flip side, it would be a breather if prices edge above $21k, above the current consolidation. This may lay the foundation for another leg up to $23.5k.
What to Expect from BTC
Sellers are firmly in control. Therefore, any dip below $19k may open up more opportunities in a bear breakout continuation pattern following the recent lull. In that case, BTC may post even more losses, driving prices toward $17.5k.
Resistance level to watch: $20.7k
Support level to watch: $19.7k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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