Bitcoin (BTC) regains a foothold after refusing to crash

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Bitcoin (BTC) created a bearish engulfing candlestick on July 5 but did not collapse the next day.

It trades inside a longer-term range and a shorter-term symmetrical triangle.

BTC trading range

BTC created a bearish engulfing candlestick on July 5th. The next day she tried to initiate a bullish move but left only a long top wick in place (red icon).

However, the MACD did not give a bearish reversal signal, instead creating a higher momentum bar. Additionally, the Stochastic Oscillator has made a bullish cross.

The closest support and resistance levels are at $ 32,000 and $ 40,550.

Short-term consolidation

The six-hour chart is also undecided.

It is possible that BTC is trading inside a symmetrical triangle, although the resistance line of the channel has not been validated enough times.

The symmetrical triangle is normally considered a neutral pattern.

Technical indicators are also undecided. The MACD is at the 0 line while the RSI moves freely above and below 50, a common sign of an unspecified trend.

Number of waves

The number of waves is currently unclear. Due to the presence of the triangle, it makes sense for the movement to be part of the X wave of a complex corrective structure.

The bearish count previously described in which the current move is a 1-2 / 1-2 wave structure becomes less likely. This is due to the inability to initiate a sharp downward movement after rupture of the canal.

On the contrary, BTC is in the process of grabbing the chain’s support line instead.

While this is technically still possible, it would be validated by a break in the descending resistance line connecting the peaks of wave 2 (black) and sub-wave (red) 2.

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

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