Bitcoin (BTC) reached a high of $32,399 on May 31st, but fell the next day and fell below $30,000 once again.
BTC has been on an uptrend since reaching a low of $26,700 on May 12th. So far, the rise has reached a high of $32,399 on May 31st.
The upward movement was preceded by a bullish divergence in the bullish divergence (green line) generated by the RSI and was also broken out of a bearish trendline (dashed). The divergence trend is still intact, indicating that the uptrend is likely to continue.
As for the price action, there is currently a battle between the bulls and the bears with respect to the $30,500 horizontal area. The area had previously acted as a support from May 2021 onwards. As it stands, it is not yet certain whether BTC has broken below or diverged from this area. Whether it manages to validate this as support will play a decisive role in determining the direction of the future trend.
short term movement
The daily chart shows that bitcoin has been following a descending resistance line since March. The line is currently at $32,500.
On June 1, the price dropped sharply before reaching this resistance line. The drop validated the $31,400 horizontal area as resistance.
Similarly for price action, RSI Caught between a bullish and bearish level. The bullish level is the trendline from the bullish divergence (green line), while the bearish 50 line (white) is resistance. Whether the RSI breaks out of the former or breaks from the latter can determine whether BTC breaks through the descending resistance line.
The six-hour chart is more bearish.
Following the rejection above, bitcoin failed to hold above the $30,000 minor area, which was expected to provide support. The area is now likely to act as resistance once again (red sign).
BTC wave count analysis
Despite the Bullish Divergence and the fact that the longer term wave count is bullish, the short term count is bearish.
Most likely, BTC has completed an ABC corrective structure, which had a 1:0.618 ratio of waves A:C. The high current ascending parallel managed to deviate barely above the middle of the channel.
A breakdown from the channel would confirm that lower prices are on the horizon.
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