Bitcoin (BTC) crashed on July 12, creating a bearish engulfing candle, reaching as high as $ 32,658.
BTC is still trading within a short-term descending parallel channel from which a breakout could occur.
BTC has traded in a range of $ 31,300 to $ 40,550 since May 19. It is currently in the lower part of this range.
On July 12, BTC created an engulfing bearish candle and fell as low as $ 32,658. However, it has since bounced back to the $ 33,000 level.
Technical indicators tend to be on the downside. The stochastic oscillator is about to make a bearish cross and the RSI is below the 50 mark. Additionally, the MACD has created a lower momentum bar. Another bearish close with another lower momentum bar will give a bearish reversal signal in the MACD.
BTC / USDT daily chart | Source: TradingView
The six-hour chart shows that BTC broke above the descending resistance line that has existed since June 15. However, the breakout did not last and the price fell back below the resistance level.
Additionally, the 6 hour indicators are bearish as both the RSI and the MACD have fallen.
BTC needs to retrace this line for the trend to be considered bullish.
BTC / USDT 6-hour chart | Source: TradingView
The two-hour chart shows BTC trading within a descending parallel channel with a very bouncy movement. Hence, BTC is likely to correct.
The most likely wavenumber indicates that the motion is a complex WXY correction structure. If so, one would expect a breakout that could push the price to the top of the range ($ 40,550).
BTC can revisit the channel’s support line to complete wave X before it explodes.
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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