Bitcoin Technical Analysis July 6th
Bitcoin (BTC) crashed on July 5, creating a bearish engulfing candle in the process.
This move caused a break below the short-term support line. However, BTC has since recaptured this line.
Reject devouring candle
After BTC created a bearish engulfing candle on July 5th, it hit as high as $ 33,125 before bouncing back up.
Technical indicators are falling. The MACD histogram has created a lower momentum bar (red symbol) that could signal a bearish reversal if Bitcoin had another negative daily close.
While the stochastic oscillator has created a bullish cross (green circle), the RSI is still below 50.
The next resistance is at $ 40,550 while the next support is at $ 31,400.
BTC / USDT daily chart | Source: TradingView
Short-term outbreak vỡ
The outlook is mixed on the two-hour chart. The engulfing bearish candle described above caused a break from the short-term rising support line.
Meanwhile, however, BTC has regained the support line.
In addition, technical indicators provide mixed signals. This is particularly evident in the RSI, which freely moves above and below 50. This is a sign that the trend is still vague.
BTC / USDT 2-hour chart | Source: TradingView
A closer look, however, corresponds to a bearish outlook.
First, the previous drop looks impulsive (highlighted in red).
Second, BTC was directly rejected at the 0.618 Fib retracement level at $ 34.885. Therefore, a pullback from this level would be the most likely scenario.
For full wave counts, click here.
BTC / USDT 30-minute 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