Technical Analysis for BTCUSD for 23rd September 2022
Bitcoin Bulls Rejuvenated, will BTC Prices Break above $20k?
Past Performance of BTC
Bitcoin prices appear to be turning the corner at spot rates. After rejecting lower prices on September 22 and expanding towards $20k, there could be more room for upsides in the short term. However, based on previous performances and how BTC has been volatile this week, it will be tough for traders to commit. Still, confirmations of yesterday's gains forcing the coin above $20k may trigger capital inflow as a section of traders try to catch the bottoms.
Bitcoin Technical Analysis
The question among traders is whether the bottom is in. From the daily chart, BTC found support from around $18.1k, $400 below notable support at $18.5k. Thus far, BTC is trading within a tight trade range marked by whipsaws. However, what's dominant is that many of this week's bars had long lower wicks suggesting buyer participation albeit in a bearish environment. Technically, a close above $20k with rising volumes may be the basis for another leg up to $22.5k, mirroring the gains of September 9. If not, reversals of September 22 gains may pin BTC back in bearish territory, even forcing further liquidation towards $17.5k.
What to Expect from BTC
Traders are apprehensive despite gains, reading from the Fear and Greed Index. Though there are glimpses of light, buyers must follow through gains of September 22 and sustain prices above $20k. Any unexpected dump would dash bulls' hope, twisting price action in favor of the dominant sellers.
Resistance level to watch: $20k
Support level to watch: $18.5k
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