Bitcoin (BTC), which is a cryptocurrency, has broken free from a long-term descending resistance and an ascending parallel channel. It’s possible that it has begun a bullish trend reversal.
Since April 5, Bitcoin traded below a descending resistance. The downward movement has resulted in a long-term low at $17,622 (on June 18).
BTC has been rising since July 18th, when it broke through the resistance line. Sometimes, a breakout of such a long-term resistance will lead to significant upward movement. This is the case where the $29,000.00 0.382 Fib Retracement Resistance level was used to measure the entire height of resistance.
The line breakout coincided with an RSI rise above 50, which can also be considered a sign that the trend is bullish. The bullish structure can be considered intact as long as the RSI support (green) remains in place.
The readings for the day are aligned with the six-hour chart. It indicates that BTC has broken from an ascending parallel channel, and validated it later (green icon). BTC also broke above $22,800 horizontal resistance during this breakout.
The sharp drop in price between June 7th and 14 has virtually eliminated horizontal resistance up to $32,000. There is a small level at $28,000. So, it’s possible that the price could accelerate quickly.
Analysis of BTC wave count
Wave count one suggests that Bitcoin has completed its five-wave yellow downward pattern that began in April. If this is the case, wave five was truncated. It failed to move below wave 3.
The longer-term wave count indicates that BTC appears to have completed an A-B–C corrective structure for measuring the downtrend since the all-time peak. So, it’s possible that a significant upward move will follow.
For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here
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