Bitcoin (BTC) Makes a Move Above Its July Highs

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In Brief
  • Bitcoin has broken out above a descending resistance line.

  • The daily RSI has bounced at its ascending support trendline.

  • BTC looks to be in wave three of a five-wave bullish impulse

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Bitcoin (BTC) has been increasing at an accelerated rate over the past three days and managed to reach a local high of $24,442 on July 29.

Bitcoin had been trading beneath a descending resistance line since the beginning of April. This downward movement led to a long-term low of $17,622 on June 18.

Bitcoin has been increasing gradually since then and broke out above the line on July 18. Initially, the price decreased, but it validated the $21,600 horizontal support area on July 26 and accelerated after. So far, it has reached a local high of $24,442. 

The daily RSI is extremely bullish. At the time when Bitcoin bounced at the $21,600 support area, the RSI rebounded from its ascending support trendline (green line) for the third time. Now, it has moved above 50 in what is often considered a sign of a bullish trend. 

If the upward move continues, the closest resistance area would likely be found at $29,370. This target is the 0.382 Fib retracement resistance level.

Short-term breakout

The six-hour chart supports the outlook from the daily time frame, showing that BTC has broken out from a short-term descending resistance line. 

Furthermore, it has broken out from the $23,750 area, which previously acted as resistance during the July highs. If it manages to hold on above this level, an increase towards $29,380 would be expected.

BTC wave count analysis

The most likely short-term wave count suggests that BTC has begun wave three of a five-wave upward move (yellow). Wave three is usually the sharpest out of the five, therefore a considerable increase is expected. 

The sub-wave count is shown in black and suggests that the price is nearing the top of sub-wave one (black).

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

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

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