Technical Analysis for BTCUSD for 14th September 2022
Bitcoin Flash Crashed from $22.7k, Dashing BTC Bulls' Hopes
Past Performance of BTC
Bitcoin prices fell yesterday, dropping from around $22.7k to below $20.7k as prices dumped hard ahead of major upgrades on key networks in the next few days. Technically, BTC is back within last week's trade range, sinking below $20.7k support. As it is, there is a risk of BTC slumping back and reversing losses of September 9 to below $18.5k in a bear continuation pattern.
Bitcoin Technical Analysis
The drop of BTC prices on September 13 meant there is a double bar formation signaling bear resumption. Specifically, yesterday's bar is wide-ranging and engulfing, with relatively high trading volumes pointing to bear participation. Since BTC is back within last week's trade range of between $19.7k and $20.7k, traders can wait for trend formation. The odds of BTC posting more losses in line with yesterday's bar will increase if prices are kept below $20.7k. A rebound above $21k may indicate that the September 13 bar completed the retest, and BTC could recover. If not, more profound losses below $19.7k will nullify this preview, swinging price action to the bearish territory.
What to Expect from BTC
Technically, sellers are in control from a top-down preview. This was confirmed by the failure of bulls to sustain prices above $20.7k. The dump on September 13 could trigger the continuation of the second half of the August bear drive. Being on the safe side, BTC bulls have a chance once the price clears August 2022 highs.
Resistance level to watch: $22.7k
Support level to watch: $19.7k
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