Technical Analysis for BTCUSD for 12th August 2022
Bitcoin Remains in a Firm Uptrend Despite the 3% Drop
Past Performance of BTC
Bitcoin is solid, and prices are around H2 2022 highs, a net positive for traders. However, despite solid gains mid-this week, there has been no convincing follow-through to signal strength and possibly trend continuation. Instead, based on the development in the daily chart, there are hints of price rejection, resulting in the August 11 bar closing with a long upper wick. This suggests that yesterday's bears managed to unwind gains posted during the early Asian and European sessions.
Bitcoin Technical Analysis
The coin is down three percent in the past 24 hours, and buyers are laboring to confirm gains. At spot rates, BTC traders may look to double down on every retracement. The immediate support line lies at August 10 lows at around $22.5k, flashing with August 27 lows. As such, provided prices are trading above this reaction level, buyers have the upper hand, and Bitcoin may print higher in subsequent sessions. Bulls must reclaim $24.5k and solidly close above July 2022 highs for clear trend definition. The surge should also be with rising trading volumes in follow-through of the July 27 and 28 breakout bars. If not, sharp drops below $22.5k will cancel this bullish preview.
What to Expect from BTC
BTC is back in a trading range in lower time frames. Encouragingly for bulls, prices are above the $23k reaction range and within the two solid bull bars of late July 2022. Therefore, despite the contraction in the second half of the week, buyers have the upper hand.
Resistance level to watch: $28k
Support level to watch: $22.5k
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