Technical Analysis for BTCUSD for 6th September 2022
Bitcoin Sellers Unyielding, BTC inside a Bear Flag
Past Performance of Bitcoin
The consolidation continues for Bitcoin prices, judging from the formation in the daily chart. Although there were hints of strength, a development that temporarily propped traders' confidence, the failure of bulls to push for better prices points to rampant sellers. BTC price is tethered close to last week's support. Thus, sellers may press on, breaching immediate support and forcing prices to new weekly lows.
Bitcoin Technical Analysis
There are higher highs relative to the lower BB, a sign of strength. Still, this has failed to translate to higher prices for Bitcoin bulls. Instead, the result is a bear flag and a near two-week consolidation inside a $1k range. The immediate support at around $19.7k flashes with the 78.6 percent Fibonacci retracement level of the June to August 2022 trade range. Ideally, risk-off traders can unload on every retest towards the upper range of the current consolidation at $20.7k. However, considering the trajectory set in the past few trading weeks, traders can wait for a clear trend definition below the current trade range. Losses below $19.7k may see BTC slide to $18.5k and later $17.5k in line with the August 19 and 26 bear bar.
What to Expect from BTC
Whether BTC bulls will find reprieve depends on how prices react at critical levels in the short term. Gains above $20.7k may drive demand, helping lift the coin towards $23.5k. Meanwhile, there could be more losses for BTC if the current support level fails to hold.
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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