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Technical Analysis for BTCUSD for 31st August 2022

Bitcoin in range below $20.7k, Sellers Dominant

Past Performance of Bitcoin

Bitcoin prices are still in a tight range when writing, tethered around the psychological $20k mark as buyers attempt to soak in the deluge of selling pressure. Currently, BTC is stable and down six percent in the past week of trading despite the rejection of lower prices. As it is, sellers have the upper hand, and the price action is within a bear breakout formation with identifiable caps at $20.7k on the upper hand.

Bitcoin Technical Analysis

There are hints of strength zooming in at the relation between the lower BB and current bear bars. Notably, there is a defined horizontal movement in lower time frames, with reaction levels at around $20.7k retested on August 20 and $19.7k on the lower end. While this may suggest waning downside momentum, the failure of prices to expand above $20.7k and reverse losses of August 26 swings price action to favor sellers. Therefore, every attempt higher may offer entries for sellers targeting $19k or $17.5k in the medium term. It is especially the case if prices cave in below this week's support, confirming the losses of August 19 and aligning with the primary trend established on August 19.

What to Expect from BTC

Fundamental and technical factors combine to pressurize BTC, reversing recent gains and supporting sellers. From the daily chart, bears will have the upper hand if prices are below $20.7k.

Resistance level to watch: $20.7k

Support level to watch: $19.7k

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

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