Bitcoin (BTC) made three attempts to break above a descending resistance line. After bouncing off a short-term support level, it is again looking to breach this area.
Bitcoin price has been rising since a low of $17,622 hit on June 18. The next day, it generated a bullish recovery Japanese luster and reached a high of $21,723 on June 21.
Although it created a long upper wick (green arrow) as well as a retracement, the price seems to have started another upward movement on June 23rd.
Should this rise continue, the nearest resistance would be $23,000. This is the 0.382 Fibonacci retracement as well as a horizontal resistance.
The 6-hour chart is more bullish than the daily one, as the 6-hour RSI has generated bullish divergences. It then moved above the top of the divergences, making them all the more valid.
BTC is also following a descending resistance line and a hitherto attempted to break above it three times.
A price move above the resistance line would also cause the RSI to move above 50, which confirmed the reversal and lifted Bitcoin towards $23,000.
The 2-hour chart shows that BTC has bounced off the 0.5 Fibonacci resistance level at $19,700 (green circle) and is on course to infer its first upper low.
Bitcoin Wave Count Analysis
The current rise since June 18 shows a five-wave structure (in black). Although it is not yet clear whether this is an ABC pattern or another bullish BTC reversal, one would expect another upside move.
The long-term wave count also indicates that a price bottom is near, which supports the hypothesis that its rise corresponds to a new bullish impulse rather than an ABC pattern.
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