Bitcoin (BTC) slumped in the week of July 12-19, hitting a low of $ 31,020.

While the long-term indicators are still falling, the short-term outlook points to a recovery in prices.

Long term support

BTC slumped in the week of July 12-19, creating a bearish candle and falling as low as $ 31,020.

Despite the decline, it is still within the long-term horizontal support of $ 32,400 that has existed since early January creating some long wicks below. The next support zone is at $ 27,000.

Technical indicators in the weekly timeframe are declining. The MACD is falling and about to cross the negative zone, the RSI is below 50 and the stochastic oscillator has created a bearish cross.

Hence, the long-term trend is likely to be down.

BTC / USDT weekly chart | Source: TradingView

Trade range

The daily chart shows that BTC is still trading in the $ 30,300 to $ 40,550 range, which has been in place since May 19th.

It is currently trading near the support zone.

Technical indicators offer a mixed outlook. The signal lines of the MACD and RSI both create bullish divergences. However, the former is below 0 while the latter is below 50. In addition, the stochastic oscillator has generated a retrograde cross (red symbol).

Therefore, while technical indicators are still falling, there are indications that a rebound is likely.

BTC / USDT daily chart | Source: TradingView

Short term movement from BTC

The six-hour chart shows that BTC has been trading in a descending parallel channel since June 29th. Such channels often contain corrective movements.

BTC has been moving up since bouncing off the support line (green icon) on July 16. The move up was initiated by a bullish divergence in the RSI. As the MACD moves up, the price is still in the lower part of the channel.

He has to get back to the center line of the canal for a breakout to be likely. When this happens, BTC is likely to return to the top of the range near $ 40,550.

BTC / USDT 6-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

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