Bitcoin (BTC) continues to consolidate inside the range

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Bitcoin (BTC) has not moved substantially in either direction over the past week, failing to assert the direction of the trend.

Its failure to collapse in the short term and subsequent rebound could mean the current move is not corrective, indicating that the low has entered. The movement of the next few days will be crucial in determining the future trend.

Weekly consolidation

During the week of June 28 to July 5, BTC did not move significantly in either direction. On the contrary, it varied between $ 32,699 and $ 36,660. It is still trading above the long term horizontal support level of $ 32,600 and has created several long lower wicks below.

However, the technical indicators in the weekly time frame are still bearish. The MACD is negative, the RSI has moved below 50 and the Stochastic Oscillator has made a bearish cross.

BTC trading range

The daily chart shows that BTC has been trading in a range between $ 31,400 and $ 40,550 since May 19. The latter is also the 0.382 Fib retracement resistance level and could coincide with a descending resistance line, depending on when it is reached.

BTC rebounded from the support area on June 22, created a higher low on June 26, and has risen since.

However, technical indicators are not bullish yet. The MACD signal line is negative and the RSI is below 50. However, both are increasing.

On top of that, the Stochastic Oscillator is very close to making a bullish cross (green circle).

Number of waves

There are two numbers of potential waves in play.

The bearish tally suggests that BTC is still in a bearish momentum, which continues from the all-time high of $ 64,895 on April 14.

If the count is correct, BTC would currently be in sub-wave two (black) of wave five (orange).

A potential target for the bottom of the movement is near $ 19,800.

BTC yesterday ended the second wave (red) near the 0.786 Fib retracement resistance level of $ 33,800. It didn’t reach the middle of the channel and broke down instead.

The story continues

Therefore, in order for the count to remain valid, BTC would soon have to break away from the channel with a clear downward movement.

The bullish count indicates that the upward movement is more of a main diagonal. In this case, BTC would peak near $ 37,500, before collapsing.

Nonetheless, the increase would be part of wave A (orange) of an ABC corrective structure, indicating that the local low is already in place.

Whether BTC breaks down from current support or rebounds will likely determine the future trend.

For the previous bitcoin (BTC) analysis from BeInCryptos, click here.

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