Bitcoin (BTC) has been down since June 29th and hit a lower high on July 5th.

BTC is currently trading on two short-term parallel channels and has ricocheted off their support lines. A break below these channels would be an extremely bearish development.

Bitcoin trading range dịch

Bitcoin collapsed on July 8, hitting a low of $ 32,077. However, it ricocheted off creating a long wick at the bottom.

Technical indicators are still open. The RSI is just below the 50 line, the MACD is still in positive territory but has lost its strength and the stochastic oscillator is still confused as to whether it is forming a bullish or a bearish cross.

The long-term range since May 19 is still valid. Support and resistance levels are at $ 31,300 and $ 40,550, respectively. The latter is the 0.382 fibonacci retracement resistance.

BTC / USDT daily chart | Source: TradingView

Short-term movement động

The 2-hour chart shows two descending parallel channels, a long channel (black) and a short-term channel (white). Parallel channels often contain corrective movements.

On July 8th, BTC recovered from the confluence of the support lines of these two channels (green symbol).

In addition, the short-term MACD is rising. Therefore, the current price level is a very suitable level to start a rally.

If BTC falls below that, the next support is found at $ 30,500.

However, that move would suggest that the recent decline was impulsive and could break below the range and make new lows.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The exact number of waves is still unclear.

Due to the presence of channels, this could be the X-wave of the WXY correction structure.

During wave Y, BTC could return to the top of the range.

BTC / USDT 6-hour chart | Source: TradingView

On the other hand, the number of bearish waves shows that BTC is still in a downtrend.

This seems most likely to be due to a break below a long term ascending parallel channel and its subsequent confirmation as resistance.

However, the lack of a sharp drop after the crash has raised some doubts.

To remove that doubt, price needs to drop below the wave 1 low ($ 29,000) to complete a 1-2 / 1-2 wave move.

When that happens, it can hit a low of nearly $ 19,000.

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.

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