Bitcoin (BTC) defends long-term support level

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Bitcoin (BTC) declined slightly during the week of July 7-12, trading in a range between $ 35,293 and $ 32,077.

It came out of a short-term descending parallel channel and is now trading within an identical medium-term pattern.

Bitcoin defends long-term support

BTC declined slightly during the week of July 7-12. It hit a low of $ 32,077 before rebounding slightly and closing at $ 34,258.

It has been trading above the horizontal support area of ​​$ 32,400 since May 19. Although BTC created several long lower wicks below this area, it failed to reach a fence below. Therefore, the support area is still intact.

Despite this event, technical indicators are bearish. The MACD is negative and falling, the RSI has fallen below 50 and the Stochastic Oscillator has made a bearish cross.

The 0.618 Fib retracement support level is located at $ 27,050.

Trading range

The daily chart shows that BTC has been trading in a range between $ 31,300 and $ 40,550 since May 19. It bounced off the range’s support line on June 22 (green icon), created a higher low on June 26 and moved higher. since.

However, BTC is still trading near the middle of the range. In addition, the technical indicators are relatively neutral. The MACD is rising but is not positive yet, the RSI is still below 50, and although the Stochastic Oscillator has made a bullish cross, it has barely advanced.

Until BTC breaks out or goes down from this range, the trend cannot be clearly determined.

Short term movement

The two hour chart shows that BTC has been trading in a descending (black) parallel channel since June 29.

While inside the pattern, it broke out of a shorter term channel (white).

The RSI and MACD are bullish and increasing. Therefore, a longer term breakout of the channel would be likely.

The number of waves suggests that this is a complex WXY corrective structure. If so, BTC is currently in wave Y.

Giving the W: Y waves a 1: 1 ratio would lead to a high near $ 40,000, very close to the top of the range depicted in the daily calendar.

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

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