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Technical Analysis for BTCUSD for 27th July 2022

Bitcoin Forms a Bull Trap, BTC Prices May Drop to 2022 Lows

Past Performance of BTC

Bitcoin is relatively weak at spot rates, dumping 13 percent from recent peaks as sellers flow back. As per the arrangement in the daily chart, the recent break above $23k is turning out to be a bull trap considering the rapid sell-off of July 26. If sellers press on today, BTC may drop to $18.8k in a retest, dashing bulls' hopes.

Bitcoin Technical Analysis

Currently, BTC is steady, hovering at yesterday’s close in a bear formation. Notably, prices are at the 61.8 percent Fibonacci retracement of the trading range from July 13 to 20. Historically, crypto price corrections tend to force prices towards the 78.6 percent price level from peaks. This reaction point flashes with the $20k level as per the BTCUSDT arrangement in the daily chart. Therefore, considering the dump on July 26 with high trading volumes, traders may find entries on every attempt higher on lower time frames with targets at $20k and later $18.8k if sellers follow through.

What to Expect from BTC

The path of least resistance in the short to medium term is southwards. As such, bears have their eyes on $20k unless there is a shift in trend above $22k and, on the safe side, $23k. Accordingly, traders may find entries on every pullback to unload, targeting 2022 lows and riding the current sell-off.

Resistance level to watch: $22k

Support level to watch: $20k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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