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Bitcoin (BTC) has declined since breaking a symmetrical triangle on June 7.
Although it has started a strong rebound to $ 31,000, it is likely that the low has not yet been reached.
BTC goes down
On June 7, BTC broke with a symmetrical triangle pattern and hit its lowest daily close since January.
However, he created a long lower wick and bounced back. The wick was similar to those created on May 19 and 23 (green icons).
Also, some bullish signs are in place, such as a potential bullish divergence in the RSI.
However, the Stochastic Oscillator is about to make another bearish cross.
The main support area is found at $ 27,000, this is the 0.618 Fib retracement support level when measuring the entire upward movement.
Future BTC movement
Despite the rebound, the six-hour chart does not provide any bullish sign. The MACD and the RSI are both down. The first is negative while the second is less than 50.
Additionally, there are two main resistance levels, at $ 33,600 and $ 35,450. BTC is currently trading inside the old one.
Unless it manages to break through that resistance and then validate it as support, we cannot view the short term trend as bullish.
Number of waves
The number of waves suggests that BTC is in wave three (black) of a bearish momentum that started with the breaking of the triangle.
Currently, he’s in sub-wave four (red), potentially completing a pullback from wave four. After its completion, BTC is expected to resume its downward movement.
An increase above the second wave high to $ 36,800 (red line) would likely invalidate this possibility.
For the longer term count, click here.
For the previous bitcoin (BTC) analysis from BeInCryptos, click here.
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