Bitcoin (BTC) falls at confluence of crucial support level

[ad_1]

Bitcoin (BTC) fell significantly on July 13, resuming the descent that started the day before and hit a low of $ 32,202.

So far, BTC has continued to decline in the early hours of July 14. However, it is rapidly approaching a confluence of support levels.

BTC trading range

BTC is still trading in a range of $ 31,300 and $ 40,550 in place since May 19. Currently, it is trading slightly above the horizontal support area of ​​$ 31,300.

The price has fallen since July 12 after hitting a local high of $ 34,678. The ongoing descent has caused the daily calendar indicators to turn bearish.

The MACD gave a bearish reversal signal and the Stochastic Oscillator made a bearish cross (red icon). The RSI is also below 50.

Therefore, the daily signals are bearish.

Short term channel

The two hour chart shows that BTC has been trading in a descending parallel channel since June 29. Such models often contain corrective structures. On top of that, the movement inside the channel seems extremely gradual and choppy, making it unlikely to be part of a bearish momentum.

Technical indicators are not yet showing signs of a bullish reversal. However, the two-hour RSI is approaching oversold levels, which have started to rebound strongly over the past month (green icon).

On top of that, BTC is trading at a confluence of support levels at $ 31,640. This is the support level of the 0.618 Fib retracement and the support line of a descending parallel channel.

Number of waves

The exact number of waves is not entirely clear. BTC has risen from the June 22 low of $ 28,600.

However, the bullish move is clearly a three wave pattern. Therefore, this is unlikely to be the start of a new bullish momentum and is a full or partial corrective structure.

However, the downward movement does not look like the start of a bearish momentum but is probably part of a complex corrective structure. Therefore, it seems that another upward movement is likely, corresponding to the parallel channel previously described.

The story continues

The most likely count indicates that the entire move from the June 22 low is corrective. In this possibility, the price is currently in the second part of the correction, after which an upward movement towards the highers of the range will occur.

The current price level is suitable for initiating a rebound as it is the retracement level of 0.618 Fib.

A sweep from the June 26th lows at $ 30,082 is also possible before a rally appears to be the most likely scenario at this point. This would cause a touch of the 0.786 Fib retracement support level.

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

[ad_2]