Exclusive Bitcoin (BTC) Rockets to Range Highs Following Downtrend

Share Article
In Brief
  • Bitcoin reached the range high at $40,550.

  • There are short-term support levels at $36,215 and $34,885.

  • BTC could reach a top near $42,200.

  • promo

    Stake your points and qualify for the 200,000 USDT prize pool. Start staking now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Bitcoin (BTC) increased considerably on July 26, managing to reach the range high at $40,550.

Sponsored



Sponsored

However, it failed to break out and is now attempting to find support in order to make another breakout attempt.

BTC attempts to break range highs

The daily chart shows that BTC reached a local high of $40,550, going into the range highs that have been in place since May.

Sponsored



Sponsored

However, the rally could not be sustained and BTC created a long upper wick (red icon). It proceeded to close the day at $37,237.

Technical indicators are bullish. The Stochastic oscillator has made a bullish cross and the RSI is above 50. In addition to this, the MACD is moving upwards and has nearly crossed into positive territory.

BTC Chart By TradingView

Future movement

The two-hour chart shows that the rejection and drop were preceded by a bearish divergence in the RSI (red line). 

Currently, it’s trying to find support at the 0.382 Fib retracement support level at $36,215. The next support is found at $34,885. This is the 0.5 Fib retracement support level. 

Despite the drop, technical indicators are not bearish yet. The MACD is still positive and the RSI is above 50. In addition, the latter has generated a hidden bullish divergence

Therefore, the most likely scenario would have BTC creating a higher low and continuing upwards.

BTC Chart By TradingView

Wave count

The wave count suggests that BTC is in the C wave (orange) of an A-B-C corrective structure. The sub-wave count is shown in red. 

The most likely target for the top of the move is $42,181. This would give waves A:C a 1:1.61 ratio. 

BTC appears to be in sub-wave four, completing a fourth wave pullback and has one more high left.

After the target is reached, one more drop would be likely.

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.
Sponsored
Share Article

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.

Follow Author

Limited offer! Learn to mine and trade crypto today for free

Join

Earn up to $10,000 USD every week in CoinFLEX AMM+ Arena!

Earn Now

Be our Supreme Scorer and qualify for a grand prize pool of 200,000 USDT!

Join