Bitcoin (BTC) price has fallen since June 29th and has hit the support line of a rising wedge.

Technical indicators and price action offer a bearish outlook, suggesting a break below the wedge is expected.

Bitcoin is sinking towards support

BTC has been on the rise since June 22nd. At the time, it hit a low of $ 28,805. The rebound that followed helped it regain the $ 31,400 horizontal support area.

On June 29, BTC hit a high of $ 36,600 before crashing. It is currently at $ 32,800.

Technical indicators in the daily time frame are falling. The MACD is closed to a bearish reversal signal (red symbol) and its signal line is still below the negative zone. The RSI is below 50 and falling while the stochastic oscillator has created a bearish cross.

The main resistance area is at $ 40,550. That target is the horizontal resistance and the 0.382 fibonacci retracement level.

BTC / USD daily chart | Source: TradingView

Ascending wedge

The six-hour chart shows that BTC could trade within a rising wedge since the June 22nd low mentioned above.

The price is currently right at the support line of the wedge, which is often viewed as a bearish pattern.

Both the MACD and RSI are bearish, which supports the possibility of a breakout.

If so, then BTC is likely to retest the $ 31,400 horizontal support area and potentially fall to the bottom.

BTC / USD 6-hour chart | Source: TradingView

Count waves

If the uptrend has been a correction since June 22nd, the top has not even reached the channel resistance line (red symbol). This created the wedge shape sketched above and is an indication of the lack of strength in movement.

A break below the channel will likely confirm that BTC is headed for testing lower levels of support.

BTC / USD 6-hour chart | Source: TradingView

A potential target for the bottom of the overall downtrend is $ 19,800. That goal is the Fib projection of waves 1-3 which will be projected onto the top of wave 4 (orange).

BTC / USD daily chart | Source: TradingView

Number of spare waves

An alternate count suggests the move has been a beginning crossover since June 22nd. In this case, the wave of five outlined above ended on June 22nd. For it to remain valid, BTC would have to recover from current levels almost immediately.

This is confirmed by an upward move above the June 29th high of $ 36,600.

However, it is likely that after the pattern is complete, a drop will appear causing a break below the wedge and eventually a higher floor.

BTC / USD 2-hour chart | Source: TradingView

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According to Beincrypto

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