August 17, 2022

Bitcoin (BTC) created a bullish candlestick through the week of July 4-11 however didn’t engulf the previous weekly bearish candlestick and created an extended higher wick.

Bitcoin has been falling since reaching an all-time excessive worth of $69,000 in November 2021. Thus far, the downward motion has led to a one-and-a-half-year low of $17,622 on June 17, 2022. 

The rebound that adopted served to validate the $19,200 horizontal space as assist. This space beforehand acted because the all-time excessive resistance from December 2017 till the worth lastly broke out in January 2021. Now, it’s attainable that the world has turned to assist. 

The weekly RSI is at a brand new all-time low contained in the oversold area. Nevertheless, it has not generated any form of bullish divergence but.

BTC transferring beneath a long-term resistance line

The every day chart gives some conflicting indicators. The value has been transferring beneath a descending resistance line for the reason that finish of March. On July 8, BTC failed to achieve this resistance line and was rejected by the $21,700 horizontal resistance space as an alternative. The horizontal line now coincides with this descending resistance space. 

Whereas the RSI has damaged out from a descending resistance line, one thing that’s usually thought-about bullish, it has but to maneuver above 50. Because of this, every day chart readings are leaning bearish.

Future motion

The six-hour chart paints a principally bearish outlook. The explanation for that is that the worth has been growing inside an ascending parallel channel since June 18. Such channels normally include corrective actions, that means {that a} breakdown from it could be anticipated. 

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At present, the worth is buying and selling within the decrease portion of the channel, giving much more credence to this chance.

Moreover, the wave rely exhibits that one other downward motion is probably going. It means that the worth is within the ultimate wave of a five-wave downward motion. Utilizing the size of waves 1-3 (yellow), the 0.382 Fib would result in a low of $16,620 whereas the 0.618 Fib stage may result in a long-term low of $13,100.

For Be[in]Crypto’s newest bitcoin (BTC) evaluation, click on right here.

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