Bitcoin (BTC) is in the process of forming a bullish pattern above the $19,200 support area. The pattern is also aligned with the bullish divergence in the RSI.
BTC has been declining since reaching an all-time high of $69,000 in November 2021. As of now, the downside movement has resulted in a June low of $17,622. The ensuing bounce created a long lower wick.
The bounce acted to validate the $19,200 horizontal area as support. The area first acted as resistance at an all-time high of 2017 and later in January 2021. Now it is expected to provide support.
Although there is no clear bullish reversal signal, the weekly RSI is sitting inside the oversold zone at an all-time low of 25.
On the weekly chart, the nearest resistance area is at $30,000.
double bottom pattern
BTC has been following a descending resistance line since the beginning of April. Most recently, the line caused rejection on June 7th, leading to the above low at $17,622.
Since then, the price is showing bullish signs as it is in the process of forming a double bottom. This is considered a bullish pattern that often leads to a bullish reversal. Additionally, this has been coupled with a bullish divergence on the daily RSI.
If there is an upward move, the nearest resistance is located at $23,250, formed by the 0.382 Fibonacci retracement resistance level. It also coincides with the descending resistance line.
Due to the confluence of these levels, a breakout of them is required for the trend to be considered bullish.
short term btc movement
The six hourly RSI gives a reading somewhat similar to the daily. Although there is no bullish divergence, the indicator has formed an ascending support line, which remains intact.
While the RSI is still below 50, it will retest its level soon if it continues to follow the ascending support line.
Finally, the two-hourly BTC chart shows that the price is trading inside a symmetrical triangle since its June lows. While the Symmetrical Triangle is considered a neutral pattern, it will lead to a breakout due to the fact that it is coming after a downward movement.
Therefore, whether the price manages to break out of the triangle or break below will determine the direction of the future trend.
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