Bitcoin (BTC) Hovers Above Long-Term Horizontal Support

Bitcoin (BTC) is in the process of creating a bullish pattern above the $19,200 support area. The pattern is also combined with bullish divergence in the RSI.

BTC has been falling since reaching an all-time high price of $69,000 in Nov 2021. So far, the downward movement led to a low of $17,622 in June. The ensuing bounce created a long lower wick. 

The bounce served to validate the $19,200 horizontal area as support. The area had previously acted as resistance in the 2017 all-time high and afterwards in Jan 2021. Now it is expected to provide support. 

While there are no clear bullish reversal signs, the weekly RSI is sitting inside oversold territory at an all-time low of 25. 

In the weekly chart, the closest resistance area is at $30,000.

Double bottom pattern

BTC has been following a descending resistance line since the beginning of April. More recently, the line caused a rejection on June 7, leading to the aforementioned low of $17,622. 

Since then, the price has been showing bullish signs, since it is in the process of creating a double bottom. This is considered a bullish pattern that often leads to bullish reversals. Additionally, it has been combined with bullish divergence in the daily RSI. 

If an upward movement follows, the closest resistance is at $23,250, created by the 0.382 Fib retracement resistance level. This also coincides with the descending resistance line. 

Due to the confluence of these levels, a breakout from them is required in order for the trend to be considered bullish.

Short-term BTC movement

The six-hour RSI gives a somewhat similar reading to the daily one. While there is no bullish divergence in place, the indicator has created an ascending support line, which is still intact. 

While the RSI is still below 50, it will soon reclaim the level if it continues following the ascending support line.

Finally, the two-hour BTC chart shows that the price has been trading inside a symmetrical triangle since the June low. While the symmetrical triangle is considered a neutral pattern, it would be expected to lead to a breakdown due to the fact that it is coming after a downward movement. 

Therefore, whether the price manages to break out or down from the triangle will likely determine the direction of the future trend.

For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here

The post Bitcoin (BTC) Hovers Above Long-Term Horizontal Support appeared first on BeInCrypto.

Related Posts

The Philippines halts virtual asset provider license applications

The Banko Sentral ng Pilipinas said that the closing of VASP applications begins on Sept. 1, 2022, and will last for three years. While many believe that…

Web3 helps Taiwan secure information against cyberattacks

In an effort against Chinese cyberattacks, Taiwan employs Web3 technology for decentralized file sharing post-Pelosi visit. The Taiwanese Ministry of Digital Affairs (MODA) plans to implement decentralized…

World’s Largest Asset Manager BlackRock Launches Spot Bitcoin Private Trust

After announcing it would enable bitcoin trading services, $10 trillion BlackRock now offers spot bitcoin exposure to institutions in a private trust. BlackRock has launched a spot…

Attackers Wipe Out $3.5M From Crypto Game Dragoma Through Rug Pull Technique

Scamming and hacking activities seem to be skyrocketing within the crypto industry. Even with the increase in innovation and technological application in the crypto space, criminals are…

Bitpay Reveals Prepaid Cardholders Can Get up to 15% Cash Back Rewards via Select Retailers

The Atlanta-based crypto payment services company Bitpay has announced that Bitpay’s prepaid cardholders are eligible for cash back rewards if they use their card with participating retailers….

Ankr Receives a Strategic Investment from Binance Labs

Ankr is a well-known Web3 infrastructure provider. In a nutshell, the protocol works in the background, but it makes using decentralized applications, wallets, as well as crypto-based…

Generated by Feedzy