Bitcoin (BTC), a cryptocurrency, has broken free from a long term descending resistance line. It is now in the process to reclaim its 200-week moving Average (MA).
The 200-week MA has been the price bottom for Bitcoin many times throughout its history (green icon). The MA has not been broken for an extended period of time. BTC has only reached five closes below this MA in the past week. This is the longest time BTC spent below the MA for 200 weeks.
The MA currently stands at $22,700. Bitcoin is trying to reclaim the MA. The first attempt to reclaim the MA is ongoing. Failure to reclaim it could lead to further price drops.
According to the daily chart, Bitcoin is likely to move above this MA. This is due to two main reasons:
- Bitcoin has broken through a descending resistance level that was in place since April 1st
- The daily RSI is above 50 and following an ascending support (green).
Bitcoin will likely reach the 0.382 fib retracement resistance near $29,000. If this upward trend continues.
On July 20, the price broke from the short-term ascending paralel channel and the $22,700 support area. It fell again within the channel area and channel after the subsequent decrease.
If the upward movement is to continue, it’s crucial that Bitcoin quickly moves above the channel confines.
Analysis of BTC wave count
According to the most probable wave count, BTC has completed its five-wave yellow downward pattern that began in April. If this is true then wave five failed to move below wave three’s bottom.
If the wave count is correct it could be that Bitcoin has initiated a new up move that will take the cryptocurrency towards the $29,000.00 resistance and possibly higher.
FOder Be[in]Crypto’s previous bitcoin (BTC) analysis, Click here
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