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Technical Analysis for BTCUSD for 8th November 2022

Bitcoin Flash Crashes below the Bull Flag and $20k

Past Performance of BTC

Bitcoin is flash crashing when writing, dropping below the bull flag, reading from the performance in the daily chart. A notable observation is that losses are wide-ranging, reversing gains of November 4 and 5, and thus invalidating the bullish  formation of last week. From the daily chart, therefore, traders can look to unload, flowing with the emerging trend.

Bitcoin Technical Analysis

The Bitcoin price is back to bearish for two reasons. Based on the daily chart, BTC is weak, breaking below the bull flag with high trading volumes following today’s losses. At spot rates, prices need to get above $21k to validate buyers and inject momentum. However, as it is, bears have the upper hand since prices are trading above $20k, previous support level. Second, BTC prices are trending lower with comparatively high volumes. At the same time, prices are below the November 4 and 5 bull bars, and the middle BB, invalidating the upside from an effort versus results perspective. Therefore, in line with this formation, traders may unload any attempt higher as long as prices are below the $20k and $20.5k resistance zone, targeting $18.5k.

What to Expect from BTC

The dump of earlier today popped the inflated hopes bulls had on upsides. There are fundamental factors at play heaping pressure on the upsides and diffusing any attempt higher. At this pace, it is likely that BTC could retest $18.5k.

Resistance level to watch: $20k

Support level to watch: $18.5k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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