Technical Analysis for BTCUSD for 18th July 2022
Bitcoin Rising as an H&S Pattern Forms with Resistance at $22k
Past Performance of BTC
Bitcoin prices are roughly 22 percent from 2022 lows when writing. However, prices are still within a broader $3.2k trade range with an identifiable liquidation line at $22k. There could be more gains in the short term if there is a decisive, high volume close above immediate resistance levels, clear in the daily chart. Presently, buyers appear to be in control.
Bitcoin Technical Analysis
There are hints of strength at spot rates. However, there is also the risk of the dreaded head and shoulder pattern forming if there is no solid push above $22k. Notably, the upside momentum seems to be slowing down in the daily and 4HR charts. The primary resistance level stands at $22k. Risk-on traders can therefore wait for a solid close above this line for trend definition, with the immediate target being $23k if buyers take over. Conversely, any contraction from last week's highs would complete the head-and-shoulder pattern in a bearish pattern, amplifying the risk of BTC cratering back to $19k.
What to Expect from BTC
Bitcoin is at a crux when writing, reading from the formation in the daily chart. For Bitcoin's uptrend to take shape, there must be a solid close above $22k with increasing participation to indicate trade conviction and signal bottoming prices. Losses below $20.5k may puncture the upside momentum, even triggering a sell-off.
Resistance level to watch: $22k
Support level to watch: $20.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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