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Bitcoin (BTC) continued its ongoing descent yesterday, falling to a low of $ 31,163.
However, it has reached a level of short-term support that may start a short-term rebound. Eventually, another decrease could occur.
Continuation of the BTC descent
BTC has been declining since June 15 when it was rejected by the resistance zone of $ 41,150.
Yesterday it created a large bearish candlestick and fell to a low of $ 31,163. This potentially validated an ascending support line for the third time.
BTC needs to bounce at this level in order to confirm the validity of the line.
Despite the potential rebound, technical indicators are bearish. The MACD histogram is almost negative while the signal line is below 0. Both RSI and Stochastic Oscillator are decreasing, the former being below 50.
However, there is some bullish divergence, which could cause a rebound in the short term. Either way, it looks like the long term trend is bearish.
Potential rebound
The two-hour BTC chart appears a bit more bullish.
The RSI has generated many bullish divergences and the MACD is moving higher.
Along with a bounce off the ascending support line, this indicates that a short term bullish move towards the descending resistance line (dotted) near $ 34,000 is likely.
BTC wave count
The number of waves indicates that the decrease is the first (black) wave of a longer term bearish impulse.
In this case, BTC now corrects the previous decline.
The three closest resistance levels would likely be at $ 35,050, $ 36,250, and $ 37,450. These targets are the Fib retracement resistance levels of 0.382, 0.5, and 0.618.
The $ 36,250 area is also horizontal resistance.
The ongoing BTC rebound seems impulsive as it clearly forms a five wave pattern.
As a result, it is very likely that this will be the start of a second corrective wave.
For the latest bitcoin (BTC) analysis from BeInCryptos, click here.
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