Bitcoin (BTC) has been moving down since April 14 when it hit an all-time high of $ 64,895.
Bitcoin has now reached the previous breakout level. It is currently being validated as support. After that, a further upward movement is expected.
Bitcoin returns to support
BTC has been moving down since April 14th when it hit an all-time high of $ 64,895.
It is currently back in the $ 61,500 zone it previously broke out of. It is in the process of validating the level as support.
Despite the sustained decline, the technical indicators remain optimistic.
If BTC bounced, the next area of resistance would likely be at $ 68,724.
Short term movement
The two hour chart shows that Bitcoin has collapsed from an ascending support line.
It is currently trading at $ 61,300 within the 0.382 fib retracement support. This is also a horizontal support level.
If BTC goes down, the next area of support is at $ 60,000.
Technical indicators are not yet showing any bullish reversal signs.
Combine that with the fact that it has barely fallen since the support line collapsed, revisiting the USD 60,200 area seems likely before resuming.
The wave number agrees with this assessment. It looks like BTC is trading in a parallel descending channel. This is likely a corrective move.
An ABC correction structure may also be created. Giving waves A: C a 1: 1 ratio gives a target of $ 60,300, exactly in line with the previously described retracement level of 0.5 Fib. Additionally, this would bring the price back to the channel’s support line.
After that, an outbreak would be expected.
For the longer-term wavenumber click here.
BTC is expected to find support at its lowest at $ 60,300. After that, another bullish move is expected, causing a break out of the current short-term pattern.
Click here to view BeInCrypto’s previous Bitcoin Analysis (BTC).