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Bitcoin (BTC) has been strengthening since May 12 and is now trying to turn the important horizontal area of $30,500 into support.
The BTC rate reached a low of $ 26,700 on May 12 and has been trying to strengthen since then. As a result, on May 31, bitcoin formed a maximum of $ 32,399.
This price increase was preceded by strong bullish divergence signals on the daily RSI (green line). In addition, the index made a bullish breakout of the bearish trend line (dotted line).
More importantly, the price has recovered above the horizontal area of $30,500. At first, it might have seemed that BTC broke through below this level, but the latest price movements already say the opposite. If the market manages to turn it into support again, it will be a strong bullish signal, promising the price further growth.
Source: TradingView
The rebound continues
On the daily chart, you can see that bitcoin has been declining along the downward resistance line since March. The last time the price tested this mark for strength was on May 5. Now the Fibo level of 0.5 retracement ($ 33,350) is also taking place here.
The bullish breakthrough of the trend line on the RSI gives reason to hope that the BTC rate will be able to successfully make a bullish breakout of the above line. However, some doubts are caused by the fact that the RSI itself still remains below the 50 mark.
Thus, we are dealing with two key levels – the downward resistance line and the horizontal support area of $30,500. The further direction of the trend for bitcoin will depend on which of these two levels the price will be able to break through.
Source: TradingView
Wave BTC analysis
Outcomes wave analysis suggest that since the formation of the low on May 12, bitcoin has been inside an ascending parallel channel. If this is indeed the case, then now the price is in the middle of this channel (red circle).
In addition, the market may now be going through wave C corrective structure A-B-C. The ratio of waves A and C as 1: 1 will give us a maximum of $ 34,000. This also coincides with the channel resistance line.
Source: TradingView
Subwavelength analysis also supports this probability, indicating that BTC is in sub-wave 4 of the five-wave bull structure. Another argument in favor of such a forecast is the signals of latent bullish divergence formed by the 2-hour RSI.
Outcomes longer-term wave analysis also supports the assumption that the market may have already bottomed out.
Source: TradingView
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