Bitcoin (BTC) Regains Footing After Refusing to Break Down

Bitcoin (BTC) created a bearish engulfing candlestick on July 5 however didn’t break down the next day.

It’s buying and selling inside a longer-term vary and a shorter-term symmetrical triangle.

BTC buying and selling vary

BTC created a bearish engulfing candlestick on July 5. The subsequent day, it tried to provoke an upward transfer however solely left an extended higher wick in place (pink icon).

However, the MACD didn’t give a bearish reversal sign, creating a better momentum bar as an alternative. In addition, the Stochastic oscillator made a bullish cross.

The closest assist and resistance ranges are discovered at $32,000 and $40,550.

Short-term consolidation

The six-hour chart is equally undecided.

It’s doable that BTC is buying and selling inside a symmetrical triangle, although the resistance line of the channel has not been validated sufficient instances.

The symmetrical triangle is often thought of a impartial sample.

Technical indicators are additionally undecided. The MACD is on the 0-line whereas the RSI is freely transferring above and beneath 50, a typical signal of an undetermined development.

BTC Triangle

Wave depend

The wave depend is at the moment unclear. Due to the presence of the triangle, it does make sense that the motion is a part of the X wave of a posh corrective construction.

Wave count

The previously outlined bearish depend during which the present motion is a 1-2/1-2 wave construction is changing into much less doubtless. This is due to the failure to provoke a pointy downward motion after the breakdown from the channel.

On the opposite, BTC is within the strategy of reclaiming the assist line of the channel as an alternative.

While it’s technically nonetheless doable, it might be validated with a breakout from the descending resistance line connecting the highs of wave 2 (black) and sub-wave (pink) 2.

BTC Movement

For BeInCrypto’s earlier bitcoin (BTC) evaluation, click here.

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About the Author: Daniel