Technical Analysis for BTCUSD for 18th February 2022
Bitcoin's Ceiling at $45k, BTC Prices Could Retest $40k
Past Performance of BTC
Even though the Bitcoin price is within a bullish breakout formation as per the candlestick arrangement in the daily chart, sellers appear to have the upper hand. Technically, there is a bearish engulfing bar following the steep losses of February 18. At the same time, sellers have completely reversed gains of February 15, calling into question the strength of the uptrend. Based on events in the daily chart, BTC has support at $40k and capped at around $44.8k and $45k on the upper end.
Bitcoin Technical Analysis
BTCUSDT is bullish despite fizzling momentum as aforementioned. Based on this formation, there could be entries on dips for aggressive traders. However, it is as long as price action is above $40k and the 20-day moving average. Already, bears have reversed gains of February 15 following the wide-ranging bear engulfing bar of February 18, signaling weakness in the BTCUSDT price structure. Meanwhile, risk-averse traders may wait for a sharp close above $44.8k and even the strong liquidation zone between $45k and $46.5k before loading the dips should the trend set by the February 4 bull bar is valid. In that case, BTC may float to $50k as price action snaps back to align with the early H2 2021 trade range.
What to Expect of BTC
From a top down preview, BTC prices are bottoming up, and the path of least resistance in the short-term is northwards provided prices are above $40k. Fundamental factors like bullish outlooks from global banks and increasing adoption could provide the necessary momentum for a leg up above $46.5k, unwinding losses of February 18.
Resistance level to watch: $45k
Support level to watch: $40k
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