Back

Bitcoin (BTC) Falls to Range Lows in Ongoing Dip

author avatar

Written by
Valdrin Tahiri

editor avatar

Edited by
Kyle Baird

22 June 2021 07:51 UTC
Trusted
  • Bitcoin is possibly following an ascending support line.
  • Daily indicators are bearish but short-term signals are bullish.
  • There is resistance at $35,050, $36,250 and $37,450.
Promo

Bitcoin (BTC) continued its ongoing descent yesterday, falling all the way to a low of $31,163.

However, it has reached a short-term support level which could initiate a short-term bounce. Following this, another decrease could eventually occur.

Continued BTC descent

Sponsored

BTC has been decreasing since June 15, when it was rejected by the $41,150 resistance area.

Yesterday, it created a significant bearish candlestick and fell all the way to a low of $31,163. This potentially validated an ascending support line for the third time. 

BTC has to bounce at this level in order to confirm the validity of the line.

Despite the potential bounce, technical indicators are bearish. The MACD histogram is nearly negative while the signal line is below 0. The RSI & Stochastic oscillator are both decreasing, the former being below 50.

However, there is some bullish divergence in place, which could cause a short-term bounce. Regardless, it does seem that the longer-term trend is bearish. 

BTC ascending support
BTC Chart By TradingView
Sponsored

Potential bounce

The two-hour BTC chart appears a bit more bullish. 

The RSI has generated numerous bullish divergences and the MACD is moving upwards. 

Along with a rebound at the ascending support line, this indicates that a short-term upward move towards the descending resistance line (dashed) near $34,000 is likely.

Short-term resistance
BTC Chart By TradingView
Sponsored

BTC wave count

The wave count indicates that the decrease is the first wave (black) of a longer-term bearish impulse.

In this case, BTC is now correcting from the preceding decrease. 

The three closest resistance levels would likely be found at $35,050, $36,250, and $37,450. These targets are the 0.382, 0.5, and 0.618 Fib retracement resistance levels. 

The $36,250 area is also horizontal resistance.

Sponsored
BTC count
BTC Chart By TradingView

The ongoing BTC bounce seems impulsive since it’s clearly forming a five-wave structure. 

Sponsored

As a result, it’s very likely that this is the beginning of a corrective wave two.

Impulse
BTC Chart By TradingView

For BeInCrypto’s latest 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.