Technical Analysis for BTCUSD for 20th April 2023
Bitcoin is Choppy; BTC May Drop to $26.6k in a Cool-Off
Past Performance of BTC
Bitcoin unexpectedly plunged on April 19, sinking below $30k as price action continued to be choppy. The heightened volatility is amid the general contraction across other asset classes. Currently, the drawdown means BTC is below $31k, a critical support line, and also back below $29.6k, swinging price action in favor of the April 17 bar, which is bearish. Whether BTC will continue dropping in subsequent sessions, remains to be seen. However, for buyers to be in control there must be a solid breakout above $31k, with expanding volumes nullifying the selling pressure of the past few trading days.
Bitcoin Technical Analysis
BTC is bullish, at least from a top-down preview. For now, though, the uptrend momentum is dropping, and sellers are pressing on. The drop of April 19 reflects the general state of the market and seems to confirm April 17 formation. As it is, sellers can load on every attempt higher below $29.6k. If there are further losses reversing the gains of April 10, the anchor bar of this uptrend, BTC may drop towards $26.6k in a retest. This move would offer traders an opportunity to ride the sell-off.
What to Expect from BTC
The uptrend is defined, but a cool-off is normal after months of higher highs. For now, traders should watch what today's close will be like. Deeper losses may see BTC drop even further, reversing April 10 losses towards March 22 lows.
Resistance level to watch: $29.6k
Support level to watch: $26.6k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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