Bitcoin (BTC) has made three attempts at breaking out from a descending resistance line. After bouncing at a short-term support level, it is making another attempt at breaking out.
BTC has been increasing since reaching a low of $17,622 on June 18. The next day, it created a bullish engulfing candlestick and proceeded to reach a high of $21,723 on June 21.
While this created a long upper wick (red icon) and a retracement, the price seemingly began another upward movement on June 23.
If the increase continues, the closest resistance would be at $23,000. This is the 0.382 Fib retracement resistance level and also a horizontal resistance area.
Short-term movement
The six-hour chart is more bullish than the daily, since it shows that the six-hour RSI has generated bullish divergence. Afterward, it moved above the high of the divergences, granting more legitimacy to the divergence.
The price is also following a descending resistance line and has so far made three breakout attempts.
A breakout from the resistance line would also cause a RSI movement above 50, confirming the reversal and taking the price towards $23,000.
The two-hour chart shows that the price has bounced at the 0.5 Fib retracement level at $19,700 (green circle) and is in the process of making its first higher low.
BTC wave count analysis
The ongoing increase since June 18 is a five wave structure (black). While it is not yet certain if it is part of an A-B-C structure or new bullish reversal, another upward movement would be expected.
The long-term wave count also indicates that a bottom is close, supporting the possibility that the increase is a new bullish impulse rather than it being an A-B-C structure.
For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here
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 Conditions, Privacy Policy, and Disclaimers have been updated.
