Bitcoin (BTC) couldn’t move significantly in either direction last week and couldn’t confirm the direction of the trend.

Failure to break below short-term support and then rebound could mean the current move is not a correction, suggesting a bottom has been hit. The developments of the next few days will be decisive for future developments.

Bitcoin is consolidating on a weekly basis

For the week of June 28 through July 5, BTC didn’t move much in either direction. On the contrary, it fluctuates between $ 32,699 and $ 36,660. It’s still trading above the long-term horizontal support of $ 32,600 and has made some long wicks below.

However, the technical indicators on the weekly timeframe are still falling. The MACD is in negative territory, the RSI has crossed below 50 and the stochastic oscillator has created a bearish cross.

Weekly BTC / USDT Chart | Source: TradingView

BTC trading range

The daily chart shows that BTC has been trading in a range of $ 31,400 to $ 40,550 since May 19th. The latter is also the 0.382 fib retracement resistance and could coincide with the descending resistance line depending on when the price hits it.

BTC bounced off support area on June 22nd, hit higher low on June 26th, and has risen since then.

However, the technical indicators have not yet confirmed the trend reversal. The signal line of the MACD is still in negative territory and the RSI is below 50. However, both are bullish.

In addition, the stochastic oscillator is very close to creating a bullish cross (green circle).

BTC / USDT daily chart | Source: TradingView

Count waves

There are currently two possible wave counts.

The number of bearish waves shows that BTC is still in a downtrend, a trend that has continued since its all-time high of $ 64,895 on April 14th.

If the numbers are correct, BTC could be in the second (black) sub-wave of the fifth (orange).

A potential target for the bottom of the move is $ 19,800.

BTC / USDT daily chart | Source: TradingView

The shorter time frame shows that BTC completed the second underside (red) yesterday near the 0.786 Fib resistance at $ 35,800. However, it did not reach the center line of the canal and fell off.

Therefore, for the number to remain valid, BTC will soon have to break under the channel with a sharp downward movement.

BTC / USDT 2-hour chart | Source: TradingView

The increasing number of waves suggests that the upward movement is a starting diagonal. In this case, BTC will hit a high near $ 37,500 before falling below the channel.

However, the rally will be part of wave A (orange) of the ABC correction, indicating that a bottom has been hit.

Whether BTC falls below current support or bounces off is likely to determine the future trend.

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.

SN_Nour

According to Beincrypto

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