Technical Analysis for BTCUSD for 24rd August 2022
Bitcoin's "Dead Cat Bounce", BTC Support at $20.7k
Past Performance of Bitcoin
After the rout on August 19, Bitcoin prices are stabilizing inside a $1k range with caps at $20.7k and $21.7k. While the bounce from recent lows is a net positive, BTC prices are still within a bear breakout formation. Accordingly, there could be more sell-offs in the days ahead. This will only change unless there is a sharp recovery, lifting prices above $23.5k and reversing the losses of August 19.
Bitcoin Technical Analysis
There is a minor bear flag in the daily chart. The attempt by buyers to bring price action to equilibrium, stabilizing prices after the undervaluation of August 20, is welcomed. However, since the defined trend is bearish and BTC bulls have failed to soak in the strong selling wave of August 19, this recovery is only a dead cat bounce. A close above $21.7k may ignite demand and a base for a retest of $22k or even $23k on the upper end. Meanwhile, because the primary trend is bearish and the coin is within a bear breakout formation, any loss below $20.7k may heap more pressure on BTC, even forcing the coin towards $19k and later $17.5k in a retest.
What to Expect from BTC
Prices are overly stable, but BTC buyers are on the receiving end, judging from the candlestick arrangement in the daily chart. If BTC slips below last week's lows, the coin may drop further in continuation of the trend set in early April and May.
Resistance level to watch: $21.7k
Support level to watch: $20.7k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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