22-22.4K bounce up to 24-24.4

Aug 18, 2022

Morning folks,

So, longer-term perspective remains bearish by far as Fed minutes recently tells that tightening effect yet to come on the market, unemployment should start rising in II H of 2022 and Fed stands on the course of 0.5-0.75% rate change in September. In general this sounds hawkish enough.

The pullback from daily resistance that we've discussed last time has started accurately. But now market is coming to 22-22.4K support and if you still hold the short position - you have to decide how to manage it. WE suggest that downside action is not over yet, and in mid term it should continue to major ~20K area support. But in short-term it could be interrupted by the pullback to form larger bearish pattern - H&S on 1H chart. It means that starting from 22-22.4K area BTC could turn to form right arm top around 24-24.4K. This will be 2nd chance for short entry.

Bulls in turn, could consider scalp long trade if reversal patterns will be formed around neckline and support area.