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11 Oct 2022
Bitcoin still struggling with $20,000
We’re repeating the analysis from the past weeks as bitcoin struggles to overcome the $20k level and is now forming a tight range between ~$18-$20.5k.
This week’s analysis is more or less unchanged from last week's. Bitcoin once again tried to stabilize above the $20,000 level but quickly dropped lower again.
As we outlined last week, the last month has established a strong resistance level around the $20k level. As already mentioned, this resistance was not breached, and the price is now heading toward the range support again.Source: Tradingview (Coinbase)
We still encourage traders to be aware of the $18k-$19k support, as a break below would be a clear bearish technical signal. We also repeat the warning; the bitcoin price has mainly been testing the lower levels of the range over the past month.
However, it’s worth monitoring the micro trend of lower highs in the current tight range. After the local bottom in late September, the lows have marginally climbed higher, which is a positive trend.
As already mentioned several times this week, the CPI update on Thursday is a catalyst for volatility, and we expect to see the BTC price challenge the current tight range. The more advanced traders can explore options strategies betting on volatility going into Thursday’s announcement, as we’re confident about increased volatility this week but not on the direction of the BTC price.