Technical Analysis for BTCUSD for 8th April 2022
Bitcoin is Under Pressure after a Bull Trap Formation from $48.5k
Past Performance of BTC
The BTC price is down three percent in the previous week of trading but stable in the past 24 hours. Encouragingly, after deep retracements from March 2022 peaks of around $48.5k, losses were contained on April 7, pointing to strength. Nonetheless, BTC is still below the $44.5k resistance—previous support—level, suggesting weakness in the immediate term.
Bitcoin Technical Analysis
As per the BTC candlestick arrangement in the daily chart, sellers are in the driving seat. The April 7 bear bar was engulfing, with relatively high trading volumes showing fragility. As such, provided prices are below the immediate resistance at $44.5k—the lower zone of the recent distribution--, every high may provide entries for sellers targeting $42.5k and $40k in a retest. Furthermore, BTC is below the 20-day moving average following sharp losses of mid this week. This formation skews to favor sellers in the immediate term. Nonetheless, a spring back reversing losses of April 6 would slow down bears, forming a foundation for a possible recovery back to $48.5k.
What to Expect of BTC
From the daily chart, BTC prices are below the flexible 20-day moving average in a bear breakout formation. Provided prices are below $44.5k and the middle BB, sellers have the upper hand in the short term.
Resistance level to watch: $44.5k
Support level to watch: $42.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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