Technical Analysis for BTCUSD for 25th August 2022
Bitcoin buyers Resilient as BTC prices rise 2% inside a Bear Flag
Past Performance of Bitcoin
Bitcoin is defying gravity and is in green on the last trading day. Adding two percent versus the USDT, the coin's price action is correcting the undervaluation of last weekend's dip as market participants seek equilibrium. As welcomed as it is, the path of least resistance remains southwards, and bears are still in a commanding position.
Bitcoin Technical Analysis
The bounce from last week's loss is positive. Even so, sellers are still in a commanding position, and every high below $21.7k and $23.5k presents liquidation opportunities for traders anticipating more dips in the days ahead. Unless there are sharp expansions above immediate resistance lines, reversing the losses of August 19, aggressive sellers can unload on every gain in the daily time frame. Considering the arrangement in the daily chart and the rejection of lower lows, as shown by the long lower wick suggesting demand in lower time frames, conservative traders can wait for a conclusive, high volume close below $20.7k before selling. Before then, they can stay on the sidelines, watching how price action pans out as BTC prints higher inside a forming bear flag.
What to Expect from BTC
Bears are in control, but Bitcoin bulls have been firm as of writing. Although the primary trend is downwards, the recovery of prices in the past trading days is a net positive. A clear trend will emerge if BTC prices close above immediate resistance lines.
Resistance level to watch: $21.7k
Support level to watch: $20.7k
Disclaimer: Opinions expressed are not investment advice. Do your research.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
CryptoAltum does not accept any clients under the age of 18.