Bitcoin (BTC) Bounces Back But Fails to Reclaim $36,000

Bitcoin (BTC) has been transferring upwards since bouncing on June 22. So far, it has managed to attain a neighborhood excessive of $36,623 on June 29.

However, BTC has failed to reclaim a number of vital resistance ranges. In addition, technical indicators don’t point out a bullish reversal is within the playing cards.

Bitcoin rebound

BTC rebounded significantly in the course of the week of June 21-28. It reached a low of $28,805 however created an extended decrease wick (inexperienced). It proceeded to attain a detailed above the $32,600 horizontal assist space. This space is essential as a result of BTC hasn’t reached a detailed beneath it because the starting of the yr, although some wicks have breached it.

The weekly shut was a hammer candlestick, which is commonly seen as a bullish signal.

Despite the shut above horizontal assist, technical indicators are nonetheless bearish. The MACD is lowering and unfavourable, the RSI has fallen beneath 50, and the Stochastic oscillator has made a bearish cross (purple icons).

Therefore, the bounce shouldn’t be enough to affirm a reversal.

BTC nonetheless buying and selling in a spread

The every day chart gives a considerably combined outlook. BTC appears to be buying and selling in a spread between $31,400 and $40,550. It has been doing so because the preliminary drop on May 19. It bounced on the assist space on June 22 and has been transferring upwards since.

On one hand, the upward motion was preceded by very vital bullish divergence within the MACD sign line, the RSI, and the Stochastic oscillator.

However, not one of the three presently has a bullish studying. The MACD sign line remains to be unfavourable, the RSI is beneath 50, and the Stochastic oscillator has made a bearish cross.

While BTC is roughly midway to the resistance space of $40,557, it has decreased sharply in the present day and is within the course of of making a bearish engulfing candlestick. Doing so would seemingly affirm that the pattern is bearish.

BTC range

Wave rely

The long-term wave rely shouldn’t be but solely clear.

While bitcoin has clearly been on a downward pattern since April 14, it’s not but sure if the downward motion ended on June 22 (inexperienced icon), or if BTC remains to be within the fifth and last wave of a bearish impulse (black rely).

While the previous would recommend that the underside is in, the latter would point out that the value may proceed lowering in direction of $23,600 and doubtlessly $19,800.

BTC Wave count

A more in-depth have a look at the motion helps the bearish state of affairs.

The ongoing upward motion seems like an A-B-C corrective construction (purple). There are two important causes for this:

  • The overlap between the upward motion and the rejection (purple line).

  • The transfer ended at a confluence of Fib resistance ranges; the 0.618 Fib retracement stage (black) and the 1:1 A:C goal (purple).

Therefore, it’s extra seemingly that BTC has but to attain its low and that one other downward motion will observe.

BTC Correction

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About the Author: Daniel