Technical Analysis for BTCUSD for 20th October 2022
Bitcoin drops 4% in 7 Days, BTC in a $2k Range with Decreasing Volumes
Past Performance of BTC
Bitcoin is down four percent from last week's highs, trading below $20k and within a bear breakout formation below the range established in the last ten days of September. Although buyers expect a sharp recovery after deflating lower lows, the immediate trend is bearish. Technically, BTC is in a bear breakout formation and down over 65 percent from September 2021 peaks, swinging price action in favor of sellers.
Bitcoin Technical Analysis
The path of least resistance remains southwards. Thus far, BTC is inching lower, pinned within the October 13 trade range and inside last week's trade zone. The primary support is at $18.5k and $19k. However, based on the formation in the daily chart, the coin might post more losses in the immediate term. Accordingly, aggressive traders can unload the coin as long as prices are below $20.5k, targeting October lows at $18.2k in the medium term. This will align with the formation established on September 13. Any unexpected surge above $20.5k will be a relief for conservative, risk-on traders, allowing them to accumulate in anticipation of more gains as BTC bottoms up.
What to Expect from BTC
Traders are cautious, reading from decreasing participation levels and narrow trade range of the BTCUSDT price action. Any break out above the $2k range, above $20.5k, or below $18.5k would be definitive, especially if there is an uptick in trading volumes.
Resistance level to watch: $20.5k
Support level to watch: $18.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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CryptoAltum does not accept any clients under the age of 18.