Exclusive Bitcoin (BTC) Returns to Range High After Considerable Increase

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In Brief
  • Bitcoin is facing resistance at $40,550.

  • There are support levels at $37,525 and $34,390.

  • BTC could be in wave two of a bearish impulse.

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Bitcoin (BTC) has been moving upward since Aug 5 and is back inside the $40,550 resistance area, which has been in place since May 19.

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It could be in the process of completing its corrective retracement after the original drop. If true, BTC could get rejected by the area and fall after.

BTC back at range highs

BTC reached a low of $37,332 on Aug 5. However, it immediately began moving upwards, creating a very long lower wick in the process and reached a bullish close of $40,862. 

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It’s currently trading inside the range high of $40,550. The resistance area has been in place since May 19, with the exception of the deviation above it between July 30 – Aug 2. 

Technical indicators for BTC are somewhat neutral. The MACD created a higher momentum bar, but it looks like it’s beginning to decrease again. Both the RSI and Stochastic oscillator are bullish but are showing decreasing momentum.

BTC Chart By TradingView

Future movement

The six-hour chart shows that the rebound in price began after BTC reached the 0.382 Fib retracement support level at $37,525 and created a double bottom. 

It’s currently facing a minor resistance level at $41,000. This area has intermittently acted as both resistance and support (red and green icons).

While the MACD is turning bullish, the RSI is neutral and sitting at the 50-line.

If a rejection occurs, the next support area would be found at $34,390.

BTC Chart By TradingView

Wave count

The wave count suggests that BTC is in wave two (black) of a bearish impulse that began with the $42,599 high on Aug 3.

If correct, BTC is currently in the process of completing sub-wave two at the 0.618 Fib retracement resistance level of $40,750. This is also a horizontal resistance area. 

An increase above the aforementioned high of $42,599 would invalidate this particular wave count.

For the longer-term 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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