Technical Analysis for BTCUSD for 10th October 2022
Bitcoin Remains Wavy, Will Bears Force BTC Below $17.5k?
Past Performance of BTC
It has been uneventful trading Bitcoin in the last four weeks. Apart from the humongous bear bar of September 13, prices have been trapped in a tight, dull range with unclear trends either to the upsides or downsides. Technically, Bitcoin is within a bear breakout formation with limits at $22.5k (on the higher end) and around $17.5k on the lower end.
Therefore, unless there are clear breakouts, conservative traders can wait on the sidelines.
Bitcoin Technical Analysis
From the daily trade, the September 13 bar dictates the current trend. However, from a top-down analysis, there are other influences from the June to August 2022 trade range. Presently, the primary support is at around June 2022 lows and bears resilient, constantly reversing gains. Nonetheless, the reaction at $17.5k and $20.5k could shape how prices flow in the short term. Gains above last week's highs may be the base for another leg up towards $22.5k, drawing buyers. If not, losses below $18k may deflate the upside momentum, possibly triggering even more sharp losses in the days ahead.
What to Expect from BTC
Bitcoin is under immense pressure, and sellers have the upper hand. Although traders are optimistic, the downside momentum is stronger. Therefore, if prices remain as it is, bears may force BTC towards $17.5k, or worse, from a top-down analysis.
Resistance level to watch: $20.5k
Support level to watch: $19k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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