FX.co ★ BTCUSD Potential For Bearish Drop | 23rd August 2022

On the H4, with price breaking out of a bullish channel and moving below the ichimoku indicator, we have a bearish bias that price will drop to 1st support at 20708.23 where the -61.8% fibonacci expansion, 161.8% fibonacci extension and swing low support are. Once we have downside confirmation of price breaking 1st support structure,we would expect bearish momentum to carry price to 2nd support at 18865.89 where the swing low support and 61.8% fibonacci projection are. Alternatively, price could rise to 1st resistance at 22560.82 where the pullback resistance and 38.2% fibonacci retracement are.

Trading Recommendation

Entry: 20708.23

Reason for Entry: -61.8% fibonacci expansion, 161.8% fibonacci extension and swing low support

Take Profit: 18865.89

Reason for Take Profit:Swing low support and 61.8% fibonacci projection

Stop Loss: 22560.82

Reason for Stop Loss:

Pullback resistance and 38.2% fibonacci retracement