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Technical Analysis for BTCUSD for 22nd August 2022

Bitcoin Bears Back in the Picture Targeting $17.5k

Past Performance of BTC

Bitcoin is down 13 percent from August 2022 highs, under pressure when writing. Even though there is a double bar formation, signaling rejection of lower lows, the path of least resistance, considering the formation in the daily chart, has been defined and is currently southwards. The August 21 bear bar also had comparatively low participation levels. Any confirmation of these gains may be a basis for a welcomed recovery back to $23k or better.

Bitcoin Technical Analysis

The wide-ranging bear candlestick of August 19 defines the short-term trend. At spot rates, sellers can search for unloading opportunities, selling on pullbacks towards $23.5k, marking August 19 highs. As long as prices are inside the bear candlestick, every high is a selling opportunity from an effort versus result perspective. The immediate target lies at $21k and $19kā€”marking July 13 lows-- with further losses likely to force Bitcoin back to H1 2022 lows at around $17.5k. Bitcoin's trajectory, as per the current formation, will only shift to green if there is a convincing high volume break above $23.5k, reversing recent losses. In such a case, BTC could float back higher towards $25.3k, mirroring gains from mid-July 2022.

What to Expect from BTC

Bitcoin's upward momentum has been diffused, and bears appear to be in control. Even though prices remain within the second half of the July 2022 range, the August 19 bear engulfing bar broke below critical support levels, now resistance. Unless there are sharp gains above immediate liquidation lines, BTC may crash to retest June 2022 lows.

Resistance level to watch: $23.5k

Support level to watch: $20.5k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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