Bitcoin (BTC) has been moving upwards since June 18, breaking out from a short-term resistance level on June 20.
BTC has been increasing since reaching a low of $17,622 on June 18. The upward movement led to the creation of a bullish engulfing candlestick the next day (highlighted). This is considered a bullish candlestick pattern, in which the entire decrease from the previous day is negated with one bullish candlestick.
Furthermore, while the RSI was extremely oversold, it has now moved outside of its oversold territory (green icon). This is considered to be a bullish sign, meaning that the trend is gradually turning bullish.
If the upward movement continues, the closest resistance would be at $23,300. This is the 0.382 Fib retracement resistance level when measuring the entire downward movement.
Ongoing BTC bounce
The six-hour chart suggests that a bounce is likely. The main reason for this is the bullish divergence that has developed in the six-hour RSI (green line). Additionally, the RSI is now very close to moving above 50. In turn, the majority of the wave counts also suggest that a bounce will transpire.
Currently, the price is trading inside the $21,000 area, which previously provided support and is now expected to act as resistance.
If it is successful in moving above it, there would be no resistance left until $23,300, the previously outlined 0.382 Fib retracement resistance level.
Short-term movement
Finally, the two-hour chart shows that the price has already broken out from a descending resistance line that had previously been in place since June 15.
Also, the RSI has now decisively moved above 50 after generating bullish divergence. This increases the validity of the breakout and supports the continuation of the upward movement towards the previously outlined targets.
For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here
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