On July 16, Bitcoin (BTC) continued its downtrend, hitting a low of $ 31,113. The reason for this was a further validation of the $ 31,300 support area. It is currently trading within a short term descending parallel channel with a breakout appearing as the most likely outcome.
BTC started falling sharply on July 15th. It initially fell to a low of $ 31,550, nearing the horizontal support level of $ 31,300. It rebounded quickly, eventually hitting a high of $ 32,820.
One long bottom wick and one bullish hammer Candlesticks were generated due to the action (green symbol), but BTC hit another low of $ 31,113 on July 16th. The technical indicators in the time of day are bearish despite the bullish candle and the MACD has given a negative reversal signal. The retrograde cross of the stochastic oscillator is a good example of this (red symbol).
Bitcoin resistance and price analysis
At $ 40,550 is the main resistance area. This is a horizontal resistance area and the 0.382 fib retracement level. Bitcoin is in 1st placest in the cryptocurrency market. Currently, the price of the coin is $ 31,230.40 with a trading volume of $ 23,878,416,776 in the last 24 hours. At the time of writing BTC The market capitalization is $ 587,847,185,178 along with a circulating offer of 18,757,862.00 BTC.
According to the five-hour chart, BTC has been trading on a descending parallel channel since June 29. On July 16, it ricocheted off the channel’s support line for the third timethe.
However, the touch occurred below the fib retracement support level of 0.618 and above the fib retracement support level of 0.786. As a result, in addition to channel support, BTC does not offer Fib support. The MACD remains bearish despite the RSI creating a bullish divergence.
Judging from the all-time high of April 14th, Bitcoin has 2 options, the first showing that a bearish impulse has completed and the second option is that BTC is still in the fourth wave and will see another decline when closed.
BTC is unlikely to be in wave five after breaking the line from wave 2-4. As a result, the first scenario implies that BTC has completed a negative impulse and is now correcting upwards. While the long-term movement would be different in both scenarios, the short-term movement would be comparable.
The entire channel is most likely part of a complex WXY correction structure. A break out of the channel would confirm this and BTC could climb to around $ 40,550, the highs of the range.