Technical Analysis for BTCUSD for 26Th August 2022
Bitcoin Prices Steady, BTC is Bearish below $22k
Past Performance of Bitcoin
BTC prices are stable when writing and down five percent in the last seven trading days. There might be hints of strength, considering how bars are in the daily chart. While positive, sellers are dominant, and the immediate trend remains bearish. If anything, Bitcoin is within a bear breakout formation, and sellers have the upper hand from volume analysis.
Bitcoin Technical Analysis
Prices are higher from this point last week as bulls correct the undervaluation of August 21. Even so, gains are not in double digits, and prices are in a narrow range inside a $1k zone with caps at $21.7k and $20.7k. The range is a bear flag that, if prices dump below $20.7k, may initiate a Bitcoin leg down to $19k in a bear continuation formation. However, on a brighter outlook, gains above $22k may be enough to draw buyers expecting prices to expand towards August 19 highs of $23.2k in a rest. Whether this could warrant traders to initiate longs will primarily depend on breakout volumes, gauging participation levels, and how wide-ranging the breakout bar is.
What to Expect from BTC
Trading volumes are comparatively low, pointing to apprehensive traders. For proper trend definition, there must be sharp, high volume, and wide-ranging bars above immediate reaction lines, cementing the current preview or signaling a welcomed shift in trend.
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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