Technical Analysis for BTCUSD for 9th September 2022
Bitcoin Edges Higher, adds 6%; BTC Remains Bearish below $20.7k
Past Performance of Bitcoin
Bitcoin is up six percent as of writing, impressively rising despite losses of mid this week. While the coin is higher, recovering and building on the encouraging gains of September 7, the path of least resistance is defined. Sellers are still in a commanding position and the coin is trading within a bear breakout formation below $20.7k. Technically, these recent gains of the past three days can turn out to be a dead cat bounce if buyers fail to breach the upper limit of last week’s trading range.
Bitcoin Technical Analysis
BTCUSDT is printing low-volume higher highs relative to the lower BB. Even though buyers are optimistic, expecting the September 6 bar to be climactic, it's still a long shot for bulls. This is because the coin is within a bear breakout formation defined by the September 6 bull bar. Notably, the candlestick was wide swinging and had high participation levels. Even so, BTC buyers are edging higher, reversing losses of September 6 but albeit with relatively low trading levels--a reason for concern. Therefore, unless otherwise there are gains above $20.7k (to be safe) with a spike of trading volumes, the downtrend is still valid.
What to Expect from BTC
Gains of early September 9 are impressive and could mark the end of the recent downtrend. Nonetheless, bears are still in control from a top down preview. In light of this, aggressive traders can offload the pullback, targeting $19k, or lower. However, this preview will change once prices rapidly surge above $20.7k.
Resistance level to watch: $20.7k
Support level to watch: $19k
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