Bitcoin (BTC) created a bullish candle on July 14th that fell as low as $ 31,550 before hitting a closing price at $ 32,820.

It is currently trying to regain the centerline of the descending parallel channel. This confirms that an outbreak could be imminent.

Bitcoin creates bullish hammer candle

BTC began a sharp decline on July 14th when it hit a low of $ 31,550 and almost touched the horizontal support area of ​​$ 31,300.

However, it recovered almost immediately, hitting a closing price of $ 32,820. This movement created a long wick and a bullish hammer candle (green symbol) at the bottom.

Even so, the technical indicators are falling in the daily timeframe. This becomes particularly clear when the stochastic oscillator forms a retrograde cross (red symbol).

The main resistance area is at $ 40,550. That target is the 0.382 Fib Retracement Level and the horizontal resistance area.

BTC / USDT daily chart | Source: TradingView

Short-term channel Kênh

The two-hour chart shows that BTC has been trading in a descending parallel channel since June 30th. Such channels often contain corrective movements so a breakout is likely.

On July 14th, the price bounced off the 0.618 fib retracement support, which is just above the channel’s support line (green circle).

He is currently facing resistance from the center line of the channel (red icon). To confirm an outbreak, it must retrace this line.

This will also cause both the MACD and the two-hour RSI to go bullish.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The rebound from the July 14th low looks like a five-wave structure, although it resembles a crossover. If this is correct, BTC could find support at the 0.5 fib retracement level at $ 32,370 or the 0.618 fib level at $ 32,176 before moving higher.

BTC / USDT 5-Minute Chart | Source: TradingView

It is likely that the entire channel is part of a complex WXY voting structure. A breakout from the channel will confirm this and can push BTC to highs near $ 40,550.

BTC / USDT 4-hour chart | Source: TradingView

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