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Bitcoin (BTC) edged down today after hitting a local high of around $ 41,300 on June 15.
The high was reached inside the resistance zone of $ 41,250, from which a breakout has yet to occur.
Bitcoin hits resistance
Bitcoin peaked at $ 41,330 before falling slightly to the current price of $ 40,230. The high was reached inside the resistance area of $ 41,250 which corresponds to the 0.382 Fib retracement level.
Despite the decline, the technical indicators are resolutely bullish. The MACD has reached positive territory and the RSI and Stochastic Oscillator are rising. The former is above 50 while the latter has made a bullish cross. Therefore, a possible breakout is likely.
If a breakout occurs, the next resistance would be $ 44,755. This target is the 0.5 Fib retracement resistance level.
However, the short term chart is showing signs of weakness.
MACD and RSI are both decreasing. The first has given a bearish reversal signal and is about to turn negative and the second has generated a bearish divergence.
If BTC pulls out, the $ 38,000 area is fine for a bottom to hit. It is a horizontal support area and coincides with a potential upward support line.
Number of waves
The pattern appears to be an ABC corrective structure, contained within a parallel upward channel. This training has been developing since May 19.
There is a confluence of Fib targets near $ 43,950 (red and black). In addition, the level represents the resistance line of the channel.
A move above this level would suggest that the move is impulsive rather than a correction.
In the most likely long-term wave count, BTC is in wave four (orange) of a bearish momentum.
In this case, a raise to $ 43,950 would complete a fourth wave pullback, reaching the parallel channel midline (red circle).
As stated above, a continued rise that brings BTC above $ 47,005 (red line) would rather indicate that the trend is bullish.
For the previous bitcoin (BTC) analysis from BeInCryptos, click here.
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