Technical Analysis for BTCUSD for 7th December 2022
Bitcoin Upside Momentum Fizzling Despite Breakout, Support at $16.5k
Past Performance of BTC
Bitcoin traders are optimistic, confident that the coin could post more gains in the days and weeks ahead. However, per the current setup, BTC price action is drab as the coin moves inside a tight range. Overall, the path of least resistance from a top-down preview is bearish. All the same, that BTC is bound by the November 30 bullish engulfing bar; there could be hope for traders.
Bitcoin Technical Analysis
Presently, bulls are upbeat. The breakout above the bear flag in late November forced BTC higher above $16.5k and later $17k. However, the failure of bulls to build on gains of November 30 points to weakness. Currently, BTC has printed a bull flag, trapped inside the bullish engulfing bar and below the all-important liquidation zone at $17.5k and $18.5k. Aggressive traders can look to liquidate on every attempt higher, targeting $15.5k. This preview is as they aim to ride the dropping upside momentum formed in the past few trading sessions. Meanwhile, unless there are gains above $17.5k, conservative traders can wait for a clear trend definition. It is as they are aware that losses below $16.5k and $15.5k effectively derail bulls.
What to Expect from BTC
There are lower lows versus the upper BB, suggesting drooping momentum. Besides, the failure to pierce $17.5k means traders are still hesitant, even projecting that the coin could be overvalued. The best course of action is to wait for a clean breakout above $17.5k or $16.5k before traders commit.
Resistance level to watch: $17.5k
Support level to watch: $16.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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