Technical Analysis for BTCUSD for 7th September 2022
Bitcoin drops 5% in a Bear Breakout Formation, Bears Set Eyes on 2022 Lows
Past Performance of Bitcoin
Bitcoin is volatile after days of sideways movement. Following the losses of September 6, BTC sellers are squarely in control and southwards, squashing the hopes of optimistic traders who had called in a Bitcoin bottom. Presently, the past ten days of consolidation is proving to be a distribution, with the bear bar posted yesterday confirming sellers of August 19 and 26, respectively.
Bitcoin Technical Analysis
Despite confidence and a series of higher highs relative to the lower BB, the failure of buyers to tame aggressive sellers from early September points to structural weakness. With the five percent dump on September 6, prices are already below last week's support, now resistance, in a bear breakout formation. Since the bear bar is wide-ranging and there is a marked uptick in trading volumes, traders may ride on the emerging trend with targets at 2022 lows at $17.5k.
What to Expect from BTC
The immediate trend has been defined, and Bitcoin may continue posting losses mirroring the performance of Q2 2022. In light of the current formation, traders may search for entries on pullbacks towards $20.7k with targets at key reaction levels in the near term, especially June 2022 lows.
Resistance level to watch: $20.7k
Support level to watch: $17.5k
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