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Bitcoin (BTC) Continues Hovering Near $22,700 Support

2 mins
Updated by Kyle Baird
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In Brief

  • Bitcoin is trading above an ascending support line.
  • BTC has broken out from a short-term descending wedge.
  • There is a support level at $22,700.
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Bitcoin (BTC) has failed to initiate any sort of upward movement after breaking out from a short-term descending wedge. 

Bitcoin has been increasing above an ascending support line since June 18. The line has been validated numerous times, most recently on July 26. This led to a local high of $24,668 on July 30. Throughout this period, the daily RSI, which is still above 50, has also been following an ascending support line (green).

During the upward move, Bitcoin managed to break out from the $21,750 horizontal resistance area and a descending resistance line that had previously been in place since the end of March. However, it has not yet initiated a significant upward spike. Rather, it has been retracing after the breakout.

There is a strong support level near $21,750, created by the ascending support line and a horizontal support area.

Daily BTC movement
BTC/USDT Chart By TradingView

Current pattern

The six-hour chart does not provide any clues as to what the direction of the trend is. 

Firstly, it’s possible that BTC is trading inside an ascending parallel channel, which is often considered a bearish pattern. As a result, an eventual breakdown from the pattern would be the most likely scenario. This possibility is supported by the deviation (red circle) and subsequent decline below the $23,750 horizontal area.

However, the price is still currently trading above the midline of the channel and has seemingly validated it as support. The possibility of a bullish breakout remains as long as Bitcoin is trading above this level. 

Finally, the RSI is freely moving above and below 50, in what is considered a sign of a neutral trend.

So, the six-hour chart provides a neutral outlook and does not help in determining the direction of the next move. 

Six-hour Channel
BTC/USDT Chart By TradingView

Short-term BTC breakout

The two-hour chart shows that BTC broke out from a descending wedge on Aug. 3. The breakout occurred after the price rebounded from the 0.5 Fib retracement support level. 

However, Bitcoin failed to initiate any major upward move and is back trading close to the 0.5 Fib retracement support level. This is a crucial level because the 0.618 Fib retracement support level at $22,225 could cause a bounce, but there is no horizontal support below it until $20,700.

Short-term BTC breakout
BTC/USDT Chart By TradingView

For Be[in]Crypto’s previous Bitcoin (BTC) analysis, click here

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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