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Bitcoin (BTC) broke on June 22, falling to a low of $ 28,805. However, it rallied almost immediately, hitting a close of $ 32,509.
While technical indicators are still bearish, the most likely wave count indicates bottom is reached.
BTC goes down and bounces back
On June 22, BTC broke down and hit a low of $ 28,805. However, it rebounded almost immediately after, creating a bullish hammer candlestick in the process (green icon). Additionally, he managed to recoup the $ 31,300 support area in the process.
Despite the rally, the daily calendar indicators are still bearish. The MACD signal line is negative, the RSI is below 50, and the Stochastic Oscillator has not yet risen.
The closest resistance zone is at $ 41,500.
Potential breakthrough
The two hour chart shows that BTC is breaking out of a descending resistance line that has been in place from the June 15 high of $ 41,330.
The next closest resistance levels are at $ 35,070 and $ 36,540. These are the 0.5 and 0.618 Fib retracement resistance levels.
Both MACD and RSI are bullish, which supports the possibility that the bullish movement will continue.
Number of waves
Long term, BTC is in or has just completed the fifth wave of a bullish impulse. This would complement a longer-term A-wave.
Although valid, the fifth wave is very short, not even reaching the length of the first wave at $ 23,577.
The other possibility is that all of the decrease is part of sub-wave one (red).
Nonetheless, both possibilities predict that BTC will rise to at least $ 35,000 and potentially $ 36,500. Whether the increase is a three or five wave pattern will determine the direction of the future trend.
The correction after the original bullish move (highlighted in black) was very shallow, not even reaching the 0.382 Fib retracement resistance level.
Therefore, it is more likely to be a wave 2 rather than a B wave, which supports the possibility that wave five has ended and the bottom has entered.
For the latest bitcoin (BTC) analysis from BeInCryptos, click here.
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