Bitcoin Technical Analysis July 1st

Bitcoin (BTC) has fallen since it was rejected from the $ 36,600 mark on June 29.

It is likely to trade within a short term ascending wedge that is commonly viewed as a bearish pattern.

Bitcoin trading range dch

BTC has moved up since it rose from the horizontal support area of ​​$ 31,400 on June 22nd. So far, it has hit a local high of $ 36,600 on June 29th.

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The uptrend was initiated by a significant bullish divergence in the MACD, RSI and the stochastic oscillator. However, all three indicators are negative. The RSI is just below 50 and the MACD signal line is still in negative territory. In addition, the stochastic oscillator produced a bearish cross.

BTC price fell yesterday but didn’t create a bearish engulfing candle. Today, however, it appears to have resumed its downward trend.

The main resistance area is $ 40,550. This is the horizontal resistance and the 0.382 Fibonacci retracement level.


BTC / USDT daily chart | Source: TradingView

Future BTC movement

The two-hour chart shows that BTC is likely trading within a rising wedge. The pattern’s resistance line has been touched many times while the support line has not been confirmed as it has only been touched twice.

There is strong support at $ 32.640 (0.618 fib retracement support) and the ascending wedge support line.

MACD and RSI are both going down, which supports the possibility for the price to drop to these levels.


BTC / USDT 2-hour chart | Source: TradingView

Count waves

The long-term wave count shows that BTC is still in the fifth wave of a bearish pulse. The aforementioned June 29 denial came right at the Fib retracement resistance at 0.618. It could be the top of the second wave (black).

While corrective structures are usually contained in parallel channels, the aforementioned high ($ 36,600) didn’t reach the resistance line of the channel (red arrow). Additionally, BTC has now fallen below the channel’s centerline, another bearish sign.

A break below the channel confirms the trend is bearish and suggests that BTC may fall to $ 23,600 and below to $ 19,800.


BTC / USDT 6-hour chart | Source: TradingView

Disclaimer: 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.


According to Beincrypto

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