The Bella Protocol (BEL) more than doubled in price on June 7, but has since formed a long upper wick.
BEL was falling below a descending resistance line since reaching an all-time high of $5.84 on April 8, 2021. The decline led to a low of $0.214 on May 12, 2022. This was a decrease of 96%. All time high price.
The price has been trending upwards since then and managed to break out of the line on May 29. Before the breakout, the line was at 417 days.
So far, it has reached a high of $2.35 on June 7. A higher 0.382 Fibonacci retracement level was formed at the $2.38 level. This caused rejection and created a long upper wick (red mark).
If the upward move continues, the next nearest resistance area will be $3.05, formed by the 0.5 Fibonacci Retracement resistance level.
short term breakout
cryptocurrency trader @hazelnutiscool Tweeted a chart of BEL which shows a rise of almost 100% after the breakout from a cup and handle pattern.
A closer look at the movement shows that the rate of increase became very sharp on June 7 after BEL exited the symmetrical triangle.
While the rise as a result of the breakout was heavy, the long lower wick and the bearish divergence (green line) that developed in the RSI are both considered bearish signals.
BEL waveform count analysis
Due to the presence of the triangle, which is usually wave four, it is likely that the price has completed a five-wave upward movement.
If so, a major improvement will be forthcoming. The main support area is near the $1.05 – $1.29 level, formed by the 0.5 – 0.618 Fibonacci retracement support level.
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