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Technical Analysis for BTCUSD for 23rd August 2022

Bitcoin Selling Off, BTC Risks Plunging to $17.5k

Past Performance of Bitcoin

Bitcoin prices are printing lower lows when writing, dropping two percent on the last trading day and double digits in the past week of trading. Despite encouraging gains on August 21, BTC dropped yesterday, reversing gains and swinging price action back in aligning with the trend defined on August 19. From the arrangement in the daily chart, bears are squarely in control, and BTC may edge lower in subsequent sessions.

Bitcoin Technical Analysis

From the daily chart formation, Bitcoin is in a bear breakout pattern, sliding below the 20-day moving average and the rising channel. The inability of buyers to convincingly soak in selling pressure and reverse losses mean sellers are in control from an effort versus results perspective. Accordingly, traders may look for unloading opportunities on any pullback towards $23.5k. A high-volume break below the August 19 low at $20.7k may draw even more sellers, fast-tracking the correction towards $19k and later $17.5k in a bear breakout continuation pattern.

What to Expect from BTC

Bitcoin is under significant selling pressure and within a bear breakout formation. As it is, traders can seek to align themselves with the primary trend, liquidation on every pullback below August 19 highs, targeting $19k and 2022 lows.

Resistance level to watch: $23.5k

Support level to watch: $20.7k

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

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