Bitcoin (BTC) has made a bullish breakout of short-term and long-term resistance lines and may soon accelerate the pace of growth towards the next nearest resistance in the $30,000 area.
BTC has been trading along a long-term downward resistance line since April 5. On June 6, the price rebounded from this level, which led to the formation of a local low at $17,622 on June 18.
After that, Bitcoin began to rise and eventually made a bullish breakout of this mark on July 18th. Although the market has not yet launched a convincing growth, nevertheless, BTC still remains above the resistance line.
In addition, the daily RSI also supports continued growth. It broke above the 50 mark and is moving along a rising support line (green line), which remains unbroken. All this is also often a sign of a bullish trend.
If the growth continues, Bitcoin may take a course to the nearest resistance level of $29,400 (Fibo 0.382 correction).
Short term breakthrough
The 6-hour chart also gives bullish signals for BTC in unison with the daily time frame.
Here, Bitcoin has already made a bullish break out of a short-term upside parallel channel and is now trying to turn it into support (green icon). In addition, the price is also testing the horizontal area at $22,600 as support.
If the market continues to rise, BTC may head towards the previously indicated resistance area near $30,000.
Wave analysis of BTC
And finally, wave analysis also promises Bitcoin a continuation of the bullish move. The most likely scenario suggests that the price has already completed the formation of a five-wave bearish structure (yellow), originating from April levels. In this pattern, the fifth wave is a truncated wave as it remained above the bottom of wave 3.
If this is true, then this means that the BTC price has probably started a new uptrend and completed the first wave of this bullish move.
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I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.