Bitcoin (BTC) rebounded on July 21, creating a bullish engulfing candle, hitting a high of $ 32,858.

BTC is moving along a short-term descending resistance line. If the price can cross this line, it could be the catalyst for a strong upward move.

Bitcoin is returning to the realm

BTC bounced back significantly on July 21st. After falling to $ 29,278, it began a rapid surge that rose to a high of $ 32,858.

This move created a bullish engulfing candle. In addition, it has regained the $ 31,300 horizontal support area it previously had since May 19th. This is a bullish move as this area is now likely to act as support again.

However, the technical indicators are not pointing up yet.

The top of the range is $ 40,550.

BTC / USDT daily chart | Source: TradingView

Future movement

The six-hour chart shows that BTC has been moving along a descending resistance line since June 29th.

On July 21, it was rejected by this resistance line as well as the 0.5 fib retracement resistance at $ 32.925.

If price can bounce back above this line / level then BTC will likely move up quickly due to the lack of overhead resistance.

MACD and RSI are both rising. The latter is above 50 while the front is about to move into positive territory.

BTC / USDT 6-hour chart | Source: TradingView

Count waves

The number of waves suggests that BTC is currently in wave C of the longer-term ABC correction structure.

The two most likely levels for the peak of the rally are at $ 37.278 and $ 42.181. The first target gives A: C waves a 1: 1 ratio, while the second target gives them a 1: 1.61 ratio.

BTC / USDT 6-hour chart | Source: TradingView

The upward movement looks impulsive (marked in green), which increases the likelihood that it could be wave C. The number of sub-waves is shown in red.

Hourly BTC / USDT 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 the Leg crypto

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