Technical Analysis for BTCUSD for 26th July 2022
Bitcoin Slumps, BTC Bulls Unable to Clear $23k Primary Resistance
Past Performance of BTC
Bitcoin prices are back in red, dropping three percent on the last trading day as per the performance in the daily chart. Overall, prices are trending below the $22k and $23k critical resistance levels. Notably, the failure of bulls to soak in the strong liquidation pressure means sellers have the upper hand in the short term. As per the arrangement in the daily chart, Bitcoin's primary support is down back at $20k. How prices react at this crucial level in the short term will determine whether the coin will recover or crash, aligning with the price action of the first half of June 2022.
Bitcoin Technical Analysis
From a top-down preview, sellers are in control. Currently, following the losses of July 25, it is highly likely that BTC prices will continue slumping, sliding further in a bear continuation formation. This can change if prices surge above the $22k resistance level and buyers sustain prices above this mark. A notable observation is that the July 25 bear bar is engulfing and has relatively high trading volumes pointing to participation. Since bulls failed to follow through on July 18 and 23 gains above $23k, traders may find unloading positions with the target set at $20k. The sell-off will especially be accelerated if prices plunge below the July 18 anchor bull bar.
What to Expect from BTC
Even though traders are optimistic, fundamental factors are unwinding progress made in the first half of last week. Immediate support lies at around July 18 lows. Any dump below the latter may signal bear trend continuation towards 2022 lows.
Resistance level to watch: $22k
Support level to watch: $20k
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