Technical Analysis for BTCUSD for 12th April 2022
Bitcoin Breaks Below a Critical Support Trend Line, BTC Risks Falling to $38k
Past Performance of BTC
The BTC price is quickly dropping from 2022 highs of around $48.5k in a bear continuation pattern. At press time, the coin is down 15 percent in the previous trading week, breaking below a critical support level as bears press lower.
Bitcoin Technical Analysis
BTC is down 15 percent from 2022 highs, breaking below the multi-week support trend line connecting January and March 2022 lows. Since sellers are in the driving seat, risk-off traders may find entries on every retracement. A confirmation of yesterday's losses would comprise a bear breakout and likely trigger a sell-off towards $38k, marking March 2022 lows. Risk-averse traders would, afterward, double down on shorts. Conversely, an unexpected high-volume reversal of the April 11 close pushing prices above last week's lows at around $42.5k may see BTC recover back to above $44.5k, a reprieve for optimistic bulls.
What to Expect from BTC
After a 47 percent surge from 2022 lows, BTC is cooling off as expected. As Bitcoin drops below the multi-week support trend line, the coin could sink further to $38k in a bear continuation pattern.
Resistance level to watch: $42.5k
Support level to watch: $40k
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