Oh bitcoin! Where are you going?

Bitcoin showed signs of spike as it hit the support area on June 22nd and peaked at $ 34.881 the next day.

Finding or rejecting support at the current price level may determine the direction of the future Bitcoin price trend.

BTC has surfaced

Bitcoin has been on the rise since June 22nd after hitting a low of $ 28,805. The rally was then initiated by a bullish divergence on both the RSI and MACD signal lines (blue line). The next day, BTC hit a high of $ 34,881.

However, the Bitcoin price has also decreased since then. While bullish divergences have emerged, the technical indicators are falling. MACD and RSI are both falling. The first value is negative while the latter has fallen below 50. The stochastic oscillator is also on the verge of a declining cross (red circle).

The next levels of support and resistance are at $ 31,300 and $ 41,500, respectively.

On the verge of an outbreak?

The H2 chart shows BTC breaking out of a descending resistance line that has existed since June 15th. However, Bitcoin was rejected by the 0.5 fib retracement resistance at $ 35,070.

BTC is currently confirming support (green symbol). This line also coincides with the 0.382 fib retracement support (white).

Even so, the technical indicators are not showing any bullish signs. The RSI has fallen below 50 and the MACD is showing a bearish reversal signal.

Increase or Decrease?

It is not yet clear whether the wavenumber is bullish or bearish. However, yesterday’s drop below the $ 33,367 low (red line) suggests a second drop. The rise from the low looks like a three-wave structure instead of a bullish impulse.

To do this, the ongoing decline would have to be a 1-2 / 1-2 wave structure. Hence the price will drop sharply.

Movement above the descending resistance line and the high of $ 33,869 would indicate that this is not true and that the volume is bullish instead.

If BTC breaks, it could mean that the current move is forming waves one and two (black) of a bullish impulse that would complete the longer-term wave A (white).

Therefore, the movements in the next few hours are critical to the direction of the trend.

Synthetic

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