Bitcoin (BTC) decreased significantly on July 5, making a bearish engulfing candlestick within the course of.
This induced a breakdown from a short-term assist line. However, BTC has reclaimed the road since.
Bearish engulfing candle
After BTC created a bearish engulfing candlestick on July 5, it proceeded to achieve a low of $33,125 earlier than bouncing.
Technical indicators are bearish. The MACD histogram has created a decrease momentum bar (purple icon) that might give a bearish reversal sign if there may be one other unfavorable each day shut.
While the Stochastic oscillator has made a bullish cross (inexperienced circle), the RSI remains to be under 50.
The closest resistance space is at $40,550 whereas the closest assist stage is discovered at $31,400.
Short-term BTC breakdown
The two-hour chart supplies a blended outlook. The beforehand outlined bearish engulfing candlestick induced a breakdown from a short-term ascending assist line.
However, BTC has reclaimed the assist line since.
In addition, technical indicators present blended readings. This is particularly noticeable within the RSI, which is freely shifting above and under 50. This is an indication of an undetermined development.
However, a better look aligns with the bearish outlook.
Firstly, the previous decease seems impulsive (highlighted in purple).
Secondly, BTC has been rejected proper on the 0.618 Fib retracement stage at $34,885. Therefore, a lower again under this stage can be the most certainly state of affairs.
For the whole wave count, click on right here.
For BeInCrypto’s earlier bitcoin (BTC) evaluation, click here.
