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Bitcoin (BTC) continued its continuous rise yesterday, creating another bullish candlestick.
It has reached a zone of horizontal and Fib resistance near $ 41,325 which could cause a rejection and a pullback in the short term.
Continuous increase in BTC
The daily chart shows a bullish outlook for BTC. It followed a bullish engulfing candlestick on June 13 with another smaller bullish candlestick the next day. So far, it has managed to hit a local high of $ 41,100.
When measuring the most recent part of the decline, the $ 41,125 area corresponds to the 0.382 Fib retracement level. In addition, it is a zone of horizontal resistance, which increases its importance. The next level of resistance is found at $ 44,775. This target is the 0.5 Fib retracement level.
Technical indicators are resolutely bullish. The MACD is positive and the RSI has risen above the 50 line. Additionally, the Stochastic Oscillator has already made a bullish cross (green icon). All of these signs indicate that a possible breakout is likely.
However, the two hour chart shows weakness. The MACD gave a bearish reversal signal and the RSI generated a bearish divergence. These two signs suggest that a short-term pullback is expected.
If so, the $ 38,000 area is both a horizontal support level and coincides with a potential upward support line drawn from the June 8 lows. Therefore, one would expect him to provide support, potentially acting as the bottom of the pullout.
Number of waves
BTC has been trading in an ascending parallel channel since May 19. It appears that the channel contains an ABC corrective structure.
A high of $ 43,950 would bring the price up to the resistance line of the channel and also give the A: C waves a 1: 1 ratio.
Therefore, it is likely that a peak will be reached near this level. This move would also complete a long-term fourth wave pullback.
For the previous bitcoin (BTC) analysis from BeInCryptos, click here.
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