Bitcoin (BTC) broke a symmetrical triangle and returned to subsequently confirm it as support.

However, the uptrend could not be sustained and the price returned to pre-breakout levels.

BTC outbreak and retest

BTC has been trading in a symmetrical triangle since hitting a local low on May 19th. It broke out on June 3 and hit a high of $ 39,476 shortly thereafter.

However, since then it has decreased and is going back into the triangle (red symbol).

While the MACD and RSI are still rising, both are at key points. Continuing the decline will cause them to get lower.

BTC / USDT 6-hour chart | Source: TradingView

Despite the short-term decline, the technical indicators are still bullish on the daily timeframe. The stochastic oscillator is very close to a bullish cross and both the MACD and RSI are still rising. The bullish divergence of the RSI (in blue) also remains intact.

Today’s performance is critical as a sustained decline could create a bearish candle. Additionally, as shown above, it will cause the short-term indicators to turn bearish.

The next resistance areas are at $ 41,270 and $ 48,230, respectively.

BTC / USDT daily chart | Source: TradingView

Count waves

The number of waves is not entirely clear.

Although less likely, the bearish scenario is still unfolding. This is due to the lack of movement above the potential high of $ 40,904 wave C (red line).

The pattern looks out of place because wave E is the longest wave if you measure the length it takes to penetrate. However, the current pattern is still valid as a triangle containing the fourth wave as long as the high of wave C is not broken.

BTC / USDT 2-hour chart | Source: TradingView

Even so, the bullish scenario is still more likely.

The entire triangle is part of wave B of the ABC correction structure. Therefore, the price is expected to move up towards the support line after falling again.

That pattern will invalidate with a decline below the wave C low at $ 33.377.

However, a rebound from the USD 35,700 support line is more likely.

By wave counting, the first break of $ 33,377 or $ 40,904 will likely determine the direction of the future trend.

BTC / USDT 2-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.

SN_Nour

According to Beincrypto

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