Technical Analysis for BTCUSD for 5th October 2022
Bitcoin Breaks above $20k in a Welcomed Revival
Past Performance of BTC
Bitcoin buyers appear to have the upper hand per the formation in the daily chart. For the first time in three weeks, the coin is trading above the 20-day moving average, that is, the middle BB in a bullish breakout formation above the $20k psychological level. The coin appears to be bottoming up, adding to recent gains, and rallying seven percent in the past week of trading.
Bitcoin Technical Analysis
Buyers are ecstatic and BTC printing encouraging higher highs, reading from price action in the daily chart. Even though the path of least resistance is southwards from a top-down approach, the shift of trend in the immediate term is a net positive. Subsequently, traders looking to ride the emerging trend may find entries to accumulate. However, this condition applies if BTC is maintained above the $19.7k and $20k support. In that case, the coin may easily float to $22.5k, reclaiming September 2022 highs.
What to Expect from BTC
The BTCUSDT candlestick arrangement in the daily chart points to a possible reversal in trend. Whether this uptrend will be sustained depends on if BTC buyers add to their longs, maintaining momentum above $20k. If there is a welcomed breach above $22.5k, BTC may tear higher to over $25k and even $30k in the medium term.
Resistance level to watch: $22.5k
Support level to watch: $20k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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