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.
Short-term breakout
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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