Briefly –
- BTC facing resistance at around $41,250.
- Bitcoins following a soaring support line.
- Support lies at $38,000.
BTC continued its descent over the past day after a 15th June resistance rejection.
The leading digital asset by market cap is in a near-term diagonal and horizontal support area that might push its price higher at the moment.
BTC’s Breakout Failure
Bitcoin reached a peak of $41,330 on 15th June. The high happened in the $41,250 resistance zone, a 0.382 Fibonacci retracement. After that, Bitcoin saw a downward trend. Yesterday, the world’s favorite asset formed a bearish candle, declining to $38,116 during the process.
However, despite the decline, the BTC market remains bullish according to technical indicators. MACD’s momentum bar has formed 3 blocks in the affirmative region. Stochastic oscillator (on a bullish cross) and RSI (above 50) are indicating an uptrend.
With these signs, market players can expect a breakout over the earlier stated resistance zone eventually. With such a move, Bitcoin could meet the following resistance at $44,755, 0.5 Fibonacci retracements.
Potential Bounce
The 2-hour daily chart indicates an uphill support line that has existed since 8th July. Yesterday’s plummet led to the 3rd authentication of the green icon.
Moreover, the dip coincides with the horizontal support level at $38,000, translating to a suitable bounce level.
Nevertheless, the Relative Strength Index and MACD have not shown any reversal possibilities. However, with the current market situation, MACD has a higher probability of such a move.
Bitcoin Wave Count
Keep in mind that BTC has been moving in an ascending channel since the drop on May 19. With that, you may refer to it as A, B, C counteractive structure.
A rise near the $43,950 market will ensure a 1: 1 ratio in waves A: C. Moreover, it would move Bitcoin to the struggle line of the parallel channel.
The red sub-wave count indicates that recent fluctuations can create an ending diagonal. A downtrend move could occur at this point.
Do you think that Bitcoin will finally break out? After how long? Feel free to leave your opinions in the comment area below.
