Bitcoin (BTC) was down slightly for the week of July 7th to 12th, trading in a range of $ 32,077 to $ 35,293.

It has broken out over the short-term descending parallel channel and is currently trading within a similar pattern over the medium term.

Bitcoin defends long-term support

BTC fell slightly for the week of July 7-12, continuing to hit a low of $ 32,077 before rebounding slightly to close at $ 34,258.

It has been trading above the horizontal support area of ​​$ 32,400 as of May 19th. Although BTC broke this area several times, it failed to close underneath and formed some long wicks underneath. Therefore, the support zone remains intact.

Nevertheless, the technical indicators are falling. The MACD is in negative territory and falling, the RSI has fallen below 50 and the stochastic oscillator has created a bearish cross.

If the price breaks the next support will be the 0.618 fib retracement level at $ 27.050.

Weekly BTC / USDT Chart | Source: TradingView

Trade range

The daily chart shows that BTC has been trading in a range between $ 31,300 and $ 40,550 since May 19th. It bounced off range support on June 22nd (green symbol), hit higher low on June 26th and is moving up.

However, BTC is still trading near the middle of the range. In addition, technical indicators are relatively neutral. The MACD is rising but has not yet crossed into the positive zone, the RSI is still below 50 and while the Stochastic oscillator has produced a bullish cross it has barely moved above it.

Until BTC breaks out or falls below this range, the trend cannot be clearly defined.

BTC / USDT daily chart | Source: TradingView

Short-term movement động

The two-hour chart shows BTC trading in a descending parallel channel (black) since June 29th.

Even within the pattern, the price broke out on the short-term channel (white).

Both RSI and MACD are positive and bullish. Therefore, the price is likely to break out via this descending parallel channel in the medium term.

BTC / USDT 2-hour chart | Source: TradingView

The wavenumber suggests that it is a complex WXY correction structure. If so, BTC is currently in wave Y.

Given the 1: 1 W: Y wave, a rally to a high near $ 40,000 is possible, very close to the resistance of the range outlined in the daily timeframe.

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

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page