The world’s most valuable cryptocurrency remains under immense pressure at press time, reading from the formation in the daily chart.
For the third day running, the coin posted lower lows, shrinking from around $19.5k of early this week to briefly dropping below $19k, trackers on October 21 shows. Technically, Bitcoin is bearish and within a bear breakout formation following losses below the ascending channel of late September and early October 2022.
As long as Bitcoin prices are trading below $20.5k, sellers will have the upper hand. This formation is notwithstanding the rejection of lower prices, as the October 13 bull bar reveals. In the days ahead, traders are watching closely how prices react at $20.5k on the upper end and $18k marking October 2022 lows.
Tesla Maintains their BTC Stash
The failure of Bitcoin prices to expand from spot rates is amid news that Tesla, the world’s largest manufacturer of electric cars, still holds their BTC stash from Q2 2022.
Earlier, Tesla revealed that they had dumped 75 percent of their initial Bitcoin holdings to unlock cash due to uncertainties related to the COVID lock-down in China.
That Tesla continues to hold BTC amid the biting bear market and Elon Musk’s conversation about acquiring the social media giant, Twitter, should be a confidence boost.
Traders are overly apprehensive and adopting a wait-and-see approach as they wait for a clear trend definition that could either see BTC plunge or soar in a welcomed rebound.
Bitcoin Technical Analysis
Besides the wide trade range of October 13, BTC prices are comparatively in a tight trade range, reading from the BTCUSDT formation in the daily chart.
Bitcoin is in a $19.5k trade range with caps at $19k and $20.5k, with the lows of October 13 at $18.2k being the outlier. Even so, the path of least resistance is southwards from a top-down perspective.
Presently, there are hints of strength. This will come true if there are gains above $20.5k, confirming gains of October 13, and thus, buyers from a top-down preview.
As it is, conservative traders can wait for a clean, convincing breakout. Gains above $20.5k, as reiterated, would see BTC flourish, expanding to $23k. If not, dips below $18k may force the coin to new 2022 lows below $17.5k.
Technical charts courtesy of Trading View.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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