Exclusive Bitcoin (BTC) Searches for Support after Retracement

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In Brief
  • BTC has returned to the $61,500 support area.

  • It's broken down from a short-term ascending support line.

  • Bitcoin is potentially trading inside a short-term parallel descending channel.

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Bitcoin (BTC) has been moving downwards since April 14 when it reached an all-time high price of $64,895.

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Bitcoin has now reached the previous breakout level. It’s currently in the process of validating it as support. After this, another upward movement is expected to follow.

Bitcoin returns to support

BTC has been moving downward since April 14 when it reached an all-time high price of $64,895. 

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Currently, it’s returned to the $61,500 zone that it previously broke out from. It’s in the process of validating the level as support. 

Despite the ongoing drop, technical indicators are still bullish.

If BTC bounces, the next resistance area would likely be found at $68,724.

Chart By TradingView

Short-term movement

The two-hour chart shows that Bitcoin has broken down from an ascending support line. 

It’s currently trading inside the 0.382 Fib retracement support at $61,300. This is also a horizontal support level.

If BTC breaks down, the next support area would be found at $60,000. 

Technical indicators do not yet show any bullish reversal signs. 

When combining this with the fact that it has barely dropped since breaking down from the support line, a revisit of the $60,200 area seems likely before continuation.

Chart By TradingView

Bitcoin wave count

The wave count agrees with this assessment. It looks like BTC is trading inside a parallel descending channel. This is likely to be a corrective movement. 

Furthermore, it’s potentially creating an A-B-C corrective structure. Giving waves A:C a 1:1 ratio provides a target of $60,300, right in line with the previously outlined 0.5 Fib retracement level. Furthermore, this would take the price back to the support line of the channel.

Afterward, a breakout would be expected.

For the longer-term wave count, click here.

Chart By TradingView

Conclusion

BTC is expected to find support at $60,300 at the lowest. Afterward, another upward movement that causes a breakout from the current short-term pattern is expected.

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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