Bitcoin (BTC) has risen since its rally on June 22nd, hitting a local high of $ 34.881 the next day.

Whether it finds support or is rejected at the current price level will likely determine the direction of the future trend.

BTC breaks and jumps

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

However, it has decreased since then. While bullish divergences have emerged, the technical indicators are still bearish. MACD and RSI are both falling. The former is in negative territory while the latter has fallen below 50. The stochastic oscillator is also on the verge of a retrograde cross (red circle).

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

BTC / USDT daily chart | Source: TradingView

breakthrough

The two-hour chart shows that BTC is breaking above a descending resistance line that has been in place since June 15th.

However, it was rejected by the 0.5 fib retracement resistance at $ 35,070.

Currently, BTC confirms this line as support (green symbol). This line also coincides with the 0.382 Fibonacci 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.

BTC / USDT 2-hour chart | Source: TradingView

Increase or Decrease?

It is not yet clear whether the wavenumber is bullish or bearish. However, yesterday’s decline broke below $ 33,367 (red line) instead of bouncing. This move shows a surge from lows that appear to be a three-wave structure rather than a bullish impulse.

Hourly BTC / USDT Chart | Source: TradingView

To do this, the ongoing decline would have to be a 1-2 / 1-2 wave structure. If so, the price will go down.

A break above the descending resistance line and a high of $ 33,869 would indicate that the above scenario is incorrect and the wavenumber is bullish instead.

BTC / USDT 30-minute chart | Source: TradingView

When BTC breaks out, the current move forms waves one and two (black) of a bullish impulse that complete the longer-term wave A (white).

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

BTC / USDT 2-hour chart | Source: TradingView

You can see the BTC price here.

Disclaimer of liability: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Beincrypto

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