FX.co ★ Bitcoin analysis for August 22nd, 2022.

Black line- resistance trend line

Bitcoin is trading around $21,000. After a sharp decline from $24,000 to $20,800, price has paused the last two sessions and is stabilizing around $21,000. As we mentioned in previous posts, the entire upward movement in Bitcoin from $17,600 seems more likely to be a counter trend bounce rather than the start of a new up trend. Bitcoin remains below the key resistance trend line. Price is showing break down signs and similar behaviour to previous sell offs. A new lower low below $17,600 is very likely over the coming weeks. Bulls need to show more signs of strength in order to hope for a new up trend. So far price action is very similar to previous corrective bounces that ended with new lower lows.