Bitcoin (BTC) maintained its upward movement on July 22, managing to stay above the horizontal area of $ 31,300.
However, it reached a descending resistance line that could trigger a short-term rejection before the bullish movement continues.
Promotion in progress
Following the bullish engulfing candle on July 21, BTC rose slightly the next day, creating another small bullish candle.
It is still holding above the $ 31,300 horizontal support area, which has now rebounded.
Technical indicators show bullish signals. MACD has created two higher momentum bars, but it is still below 0, the RSI is rising and is almost above 50, and the slope of the Stochastic Oscillator is gradually turning bullish, but there is no bullish crossover yet.
closest resistance area is in the middle of the $ 35,900 range.
TradingView BTC chart
Will BTC explode?
six-hour chart shows that BTC has been following a descending resistance line since June 29.
He just touched the line for the fourth time.
line also coincides with the 0.5 Fib retracement resistance level at $ 32,975. refore, BTC is currently facing a confluence of resistance levels.
TradingView BTC chart
two-hour chart shows some weaknesses. BTC has created a double top pattern with two long top wicks (red icon). On top of that, the RSI and MACD have generated bearish divergences.
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refore, it is possible that BTC will be rejected and declined.
TradingView BTC chart
In this case, the top three support levels would be at $ 31,530, $ 31,100, and $ 30,675. se are the Fibonacci Retracement Support Levels 0.382, 0.5 and 0.618 respectively.
TradingView BTC chart
Wave count
wave count suggests that BTC is in wave C of an ABC corrective structure.
If the A: C waves have a 1: 1 ratio, the formation would end near a high of $ 37,278. If instead they have a 1: 1.61 ratio, it could peak near $ 42,181.
TradingView BTC chart
Looking at the long-term move, the second target of $ 42,181 would make more sense relative to the duration of the previous waves.
level coincides with the Fibonacci retracement resistance level of 0.382 (white) when measuring the entire downward movement from April’s all-time high.
TradingView BTC chart
For BeInCrypto’s previous bitcoin (BTC) review, click here.
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