Bitcoin (BTC) continued an upward development on July twenty second, holding above $ 31,300.

However, the price has hit the descending resistance line which might end in a brief time period rejection earlier than resuming the uptrend.

Upwards

After BTC created a bullish engulfing candle on July 21, BTC rebounded barely the following day, creating one other little bullish actual physique.

It continues to be holding above the USD 31,300 help space misplaced in the course of the latest decline.

Technical indicators give bullish alerts. The MACD histogram has produced two bars with larger momentum, however the MACD line continues to be beneath zero, the RSI is rising and is about to cross over 50 and the slope of the stochastic oscillator is slowly turning up however continues to be producing no bullish cross.

The subsequent resistance is the midline of the vary at $ 35,900.

BTC / USDT day by day chart | Source: TradingView

Will BTC get away?

The six-hour chart reveals that BTC has been transferring alongside a descending resistance line since June twenty ninth.

It has simply reached that line for the fourth time.

This line additionally coincides with the 0.5 retracement FIb resistance at $ 32.975. As a end result, BTC is at present going through a confluence of resistance ranges.

BTC / USDT 6-hour chart | Source: TradingView

The two hour chart reveals some weaknesses. BTC has created a double high with two lengthy wicks above it (crimson symbol). In addition, RSI and MACD have created bearish divergence.

As a end result, BTC might be rejected and dropped.

BTC / USDT 2-hour chart | Source: TradingView

In this case, three key help ranges are $ 31,530, $ 31,100, and $ 30,675. These are the fib retracement help ranges of 0.382, 0.5 and 0.618, respectively.

BTC / USDT 15-minute body | Source: TradingView

Count waves

The variety of waves reveals that BTC is in wave C of the ABC correction construction.

If wave A: C is 1: 1, the formation will finish close to the excessive of $ 37.278. At a ratio of 1: 1.61, the price might hit a excessive of $ 42.181 as an alternative.

BTC / USDT 6-hour chart | Source: TradingView

Looking on the barely longer-term transfer, the second goal of $ 42.181 makes extra sense in comparison with the size of the earlier waves.

This stage coincides with the 0.382 Fibonacci retracement resistance (white) which measures all the bearish transfer because the all-time excessive in April.

BTC / USDT day by day chart | Source: TradingView

Disclaimer: This article is for informational functions solely, not funding recommendation. Investors ought to analysis rigorously earlier than making a call. We will not be accountable for your funding choices.

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According to the Leg crypto

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