Bitcoin plummeted on June 22 to a low of $ 28,805. However, almost immediately, the price reversed and closed trading at $ 32,509.
Technical indicators remain bearish, however, the results of the wave analysis suggest that Bitcoin has already found a bottom.
BTC: the fall and rebound
Bitcoin (BTC) plummeted on June 22 to a low of $ 28,805. However, almost immediately the price reversed and rebounded, forming a bullish hammer candlestick pattern in the process. In addition, the market managed to recover above the $ 31,300 support area.
Despite the rally, technical indicators on the daily chart remain bearish. MACD is giving bearish signals, the RSI is below 50, and the Stochastic Oscillator has not yet started to rise.
The nearest resistance is at $ 41,500.
Potential bullish breakout
On the 2-hour chart, Bitcoin is attempting a bullish breakout of the downtrend resistance line built from the June 15 high at $ 41,330.
The nearest resistance levels are at $ 35,070 and $ 36,540 (Fibo levels of 0.5 and 0.618 correction).
Indicators MACD and RSI are showing a bullish sentiment, supporting the potential for continued growth in BTC.
Dpbutfandto INTFROM. A source: TradingView
BTC Wave Analysis
Long-term wave analysis results show that Bitcoin is within or has just completed the formation of a fifth wave of a bullish impulse price structure. This will complete long-term wave A.
It is worth noting that wave 5 is very short. She couldn’t even reach wavelength 1 at $ 23,577.
Another plausible scenario is that the entire bearish move is part of subwave 1 (red).
Nevertheless, both options promise the BTC rate to rise in the direction of at least $ 35,000 and possibly $ 36,500. The further direction of the trend will depend on whether we are dealing with a three-wave or five-wave structure.
The correction after the initial bullish move (highlighted in black) was very modest. It did not even reach the Fibo level of 0.382 retracement.
Thus, it seems more likely that Bitcoin is now in wave 2, and not in wave B. This speaks in favor of the assumption that the fifth wave is completed and the market has found the bottom.