Technical Analysis for BTCUSD for 18th August 2022
Bitcoin Crumbling, BTC Could Retest Support at $22.5k
Past Performance of BTC
Bitcoin prices are down four percent on the last trading day, reading from the performance in the daily chart. A notable observation is that BTC is rapidly cooling down, dropping below the middle BB. Although accompanying trading volumes are comparatively low, BTC bulls have failed to soak bear pressure, questioning the strength of the uptrend. The immediate support zone is at around $22.5k and $22.7k levels, coinciding with August 10 lows.
Bitcoin Technical Analysis
The Bitcoin uptrend will be valid only if there is a sharp close above $25.3k with expanding volumes. Thus far, price action skews to favor rampant sellers, a concern for optimistic traders. Following the losses of August 17, bears can wait for a solid confirmation below the middle BB—a dynamic support line—and later $22.5k. Any dump following yesterday's losses may swing price action for sellers. In that case, aggressive traders may ride the emerging trend, targeting $21k. Being more bullish, traders will be reinvigorated if there is a solid close above $25.3k in confirmation of the end of July 2022 gains.
What to Expect from BTC
Cracks are beginning to emerge on Bitcoin. Even though buyers are confident, bulls must clear $25.3k with rising trading volumes for the end of July 2022 trend to be valid. If not, confirmation of August 17 losses may force prices even lower.
Resistance level to watch: $25.3k
Support level to watch: $22.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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