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Bitcoin (BTC) reached a may 31 high of $32399, but the next day fell and again rolled back to the $30,000 mark.
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 bullish divergence signals on the daily RSI (green line). In addition, the index made a bullish breakout of the bearish trend line (dotted line). The divergence trend line still holds, indicating the possibility of continued co-coin growth.
Meanwhile, bears and bulls have converged in a battle for a $30,500 horizontal area that had previously played a support role since May 2021. At the moment, it remains unclear whether BTC made its bearish breakthrough or whether we observed just a deviation in the price. If the market manages to turn this area into support again, it will be a strong bullish signal, promising bitcoin further growth, and will help determine the direction of the trend.
Source: TradingView
Short-term dynamics
On the daily chart, you can see that bitcoin has been declining along the downward resistance line since March. Now it is held at $ 32,500.
On June 1, the price fell sharply, not reaching this resistance line, which marked the horizontal area of $ 31,400 as resistance.
The RSI index, like the price, is also trapped between bullish and bearish levels. The bullish level is represented by the bullish divergence trend line (green line), and the bearish level is represented by the resistance of the 50 mark (white). The further direction of the BTC trend and its ability to break through the downward resistance line may depend on which of these two levels the RSI index manages to break through.
Source: TradingView
The 6-hour chart reflects a more bearish picture.
After the aforementioned rebound, bitcoin failed to gain a foothold over the area of a negligible $30,000, although it was expected. That it will support the price. Now it again plays the role of resistance (red icon).
Source: TradingView
Wave BTC analysis
Despite bullish divergence and still bullish results longer term wave analysis, the short-term picture looks less optimistic.
The results of the most likely analysis suggest that BTC has completed the formation of the correctional structure A-B-C with the ratio of waves A and C as 1: 0.618. This maximum narrowly deviated above the median line of the current ascending parallel channel.
A bearish breakout from the channel will confirm the likelihood of a price decline.
Source: TradingView
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