Exclusive Bitcoin (BTC) Reclaims Support Level After Bearish Daily Candle

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In Brief
  • Bitcoin has created a bearish engulfing candlestick.

  • BTC broke down from an ascending support line

  • Technical indicators are leaning on bearish.

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Bitcoin (BTC) decreased considerably on July 5, creating a bearish engulfing candlestick in the process.

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This caused a breakdown from a short-term support line. However, BTC has reclaimed the line since.

Bearish engulfing candle

After BTC created a bearish engulfing candlestick on July 5, it proceeded to reach a low of $33,125 before bouncing. 

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Technical indicators are bearish. The MACD histogram has created a lower momentum bar (red icon) that could give a bearish reversal signal if there is another negative daily close.

While the Stochastic oscillator has made a bullish cross (green circle), the RSI is still below 50.

The closest resistance area is at $40,550 while the closest support level is found at $31,400.

BTC Chart By TradingView

Short-term BTC breakdown 

The two-hour chart provides a mixed outlook. The previously outlined bearish engulfing candlestick caused a breakdown from a short-term ascending support line. 

However, BTC has reclaimed the support line since. 

In addition, technical indicators provide mixed readings. This is especially noticeable in the RSI, which is freely moving above and below 50. This is a sign of an undetermined trend.

BTC Chart By TradingView

However, a closer look aligns with the bearish outlook.

Firstly, the preceding decease looks impulsive (highlighted in red). 

Secondly, BTC has been rejected right at the 0.618 Fib retracement level at $34,885. Therefore, a decrease back below this level would be the most likely scenario.

For the complete wave count, click here.

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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