Briefly-
- BTC broke out beyond a descending resistance.
- The crypto rebounded at the support level of $21,000.
- Bitcoin completed an intricate corrective structure.
Bitcoin has secured a near-term support floor after moving beneath it. Regaining this footing remains crucial for upside continuation.
Bitcoin has had its price movements beneath a descending resistance since 5 April. Meanwhile, the level catalyzed multiple rejections, the recent one on 7 June. That saw the bellwether crypto sliding towards the $17,622 long-term lows on 18 June.
Bitcoin launched upward movements since then. BTC broke beyond the line on 18 July. Nevertheless, it’s yet to inflict a substantial upside action. Contrarily, it appears to decrease to authorize the line as its support.
The daily Relative Strength Index reveals considerable movements. It has re-joined the bullish divergence trend line and seems ready to rebound for the 3rd time. The RSI should maintain beyond this line to continue the upside movements.
Maintaining the upside would open the path to the nearest resistance at $29,370, matching the 38.2% Fibonacci retracement resistance. Meanwhile, the RSI breaking down from the line would welcome new local lows for the crypto.
Potential Supports
The 6hr chart indicates that Bitcoin has been climbing beyond an ascending support level since 19 June. For now, the support stands at $20,200, matching the 61.8% Fibonacci retracement support. Meanwhile, BTC explored a massive support region of around $21,000, formed by 0.5 Fibonacci retracement plus horizontal support.
Meanwhile, it briefly plunged beneath it on 26 July before regaining the level the following day. Validating it as support would signal that the near-term correction has ended.
Bitcoin Wave Count
The most probable near-term wave count shows BTC traverses wave2 of a 5-wave upside trend. Within it, sub-wave count reveals an intricate W-X-Y corrective setup, whereas wave W and wave Y boast a 1:1 ratio.
Bitcoin attempts to climb beyond the descending parallel channel’s midline. Such a move would be a solid signal of a complete correction. It’s crucial to witness what upcoming trading sessions will define the asset’s trend. What are your thoughts? You can comment in the section below.
