Bitcoin (BTC) continued its ongoing increase yesterday, creating another bullish candlestick.

It has reached a horizontal and Fib resistance area near $41,325 which could cause a short-term rejection and pullback.

Ongoing BTC increase

The daily chart shows a bullish outlook for BTC. It followed up a bullish engulfing candlestick on June 13 with another smaller bullish candlestick the next day. So far, it has managed to reach a local high of $41,100.

When measuring the most recent portion of the decrease, the $41,125 area is the 0.382 Fib retracement level. In addition, it’s a horizontal resistance area, increasing its significance. The next resistance level is found at $44,775. This target is the 0.5 Fib retracement level.

Technical indicators are decisively bullish. The MACD is positive and the RSI has increased above the 50-line. Furthermore, the Stochastic oscillator has already made a bullish cross (green icon). All these signs indicate that an eventual breakout is likely.

However, the two-hour chart is showing weakness. The MACD has given a bearish reversal signal and the RSI has generated a bearish divergence. Both these signs suggest a short-term pullback is expected.

If so, the $38,000 area is both a horizontal support level and coincides with a potential ascending support line drawn from the June 8 lows. Therefore, it would be expected to provide support, potentially acting as the bottom for the pullback.

BTC Short-term movement

Wave count

BTC has been trading inside an ascending parallel channel since May 19. It seems that the channel contains an A-B-C corrective structure.

A high of $43,950 would take the price all the way to the resistance line of the channel and would also give waves A:C a 1:1 ratio.

Therefore, it’s likely that a high will be reached close to that level. The move would also complete a longer-term fourth-wave pullback.

A-B-C structure

For BeInCrypto’s previous bitcoin (BTC) analysis, click here.

(Excerpt) Read more Here | 2021-06-15 00:22:14
Image credit: source

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