Exclusive Bitcoin (BTC) Pumps and Reaches Local High Above $41,000

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In Brief
  • Daily bitcoin indicators are bullish but short-term signals show weakness.

  • BTC is facing resistance at $41,325 and $44,775.

  • There is a support level at $38,000.

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Bitcoin (BTC) continued its ongoing increase yesterday, creating another bullish candlestick. 

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It has reached a horizontal and Fib resistance area near $41,325 which could cause a short-term rejection and pullback.

Ongoing BTC increase

The daily chart shows a bullish outlook for BTC. It followed up a bullish engulfing candlestick on June 13 with another smaller bullish candlestick the next day. So far, it has managed to reach a local high of $41,100. 

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When measuring the most recent portion of the decrease, the $41,125 area is the 0.382 Fib retracement level. In addition, it’s a horizontal resistance area, increasing its significance. The next resistance level is found at $44,775. This target is the 0.5 Fib retracement level.

Technical indicators are decisively bullish. The MACD is positive and the RSI has increased above the 50-line. Furthermore, the Stochastic oscillator has already made a bullish cross (green icon). All these signs indicate that an eventual breakout is likely.

BTC Chart By TradingView

However, the two-hour chart is showing weakness. The MACD has given a bearish reversal signal and the RSI has generated a bearish divergence. Both these signs suggest a short-term pullback is expected.

If so, the $38,000 area is both a horizontal support level and coincides with a potential ascending support line drawn from the June 8 lows. Therefore, it would be expected to provide support, potentially acting as the bottom for the pullback.

BTC Chart By TradingView

Wave count

BTC has been trading inside an ascending parallel channel since May 19. It seems that the channel contains an A-B-C corrective structure. 

A high of $43,950 would take the price all the way to the resistance line of the channel and would also give waves A:C a 1:1 ratio.

Therefore, it’s likely that a high will be reached close to that level. The move would also complete a longer-term fourth-wave pullback.

BTC Chart By TradingView

For BeInCrypto’s previous bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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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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