Bella Protocol (BEL) more than doubled in price on June 7 but has created a long upper wick since.
BEL had been falling underneath a descending resistance line since reaching an all-time high price of $5.84 on April 8, 2021. The downward movement led to a low of $0.214 on May 12, 2022. This amounted to a decrease of 96% measuring from the all-time high price.
The price has been moving upwards since and managed to break out from the line on May 29. Prior to the breakout, the line had been in place for 417 days.
So far, it has reached a high of $2.35 on June 7. The high was made right at the 0.382 Fib retracement resistance level at $2.38. This caused a rejection and created a long upper wick (red icon).
If the upward movement continues, the next closest resistance area would be at $3.05, created by the 0.5 Fib retracement resistance level.
Short-term breakout
Cryptocurrency trader @hazelnutiscool tweeted a chart of BEL which shows a nearly 100% increase after a breakout from a cup and handle pattern.
A closer look at the movement shows that the rate of increase accelerated greatly on June 7, after BEL broke out from a symmetrical triangle.
While the increase resulting from the breakout was massive, the long lower wick and the bearish divergence (green line) that has developed in the RSI are both considered bearish signs.
BEL wave count analysis
Due to the presence of the triangle, which is usually wave four, it is likely that the price has completed a five-wave upward movement.
If so, a considerable correction would be forthcoming. The main support area is between $1.05 – $1.29, created by the 0.5 – 0.618 Fib retracement support levels.
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