Bitcoin (BTC) collapsed on July 13th and continued the decline started the day before, reaching a low of $ 32,202.

So far, BTC has continued to decline in the wee hours of July 14, but is rapidly approaching a confluence of support levels.

BTC trading range

BTC is still trading in a range of $ 31,300 to $ 40,550, which began on May 19th. It is currently trading slightly above the $ 31,300 support area.

The price has fallen since July 12th after hitting a local high of $ 34,678. The drop in prices has caused the daily timeframe indicators to turn bearish.

The MACD has shown a bearish reversal signal and the stochastic oscillator has generated a bearish cross (red symbol). The RSI is also below 50.

Hence the daily signal is bearish.

BTC / USDT daily chart | Source: TradingView

Short-term channel Kênh

The two-hour chart shows that BTC has been trading in a descending parallel channel since June 29th. Such patterns often contain corrective structures. Also, the movement within the channel appears to be very slow and unstable, making it unlikely to be part of the retrograde momentum.

Technical indicators are not yet showing any signs of a bullish reversal. However, the 2-hour RSI is approaching the oversold level at which last month’s rallies began (green icon).

Additionally, BTC is trading at the confluence of the support levels at $ 31,640. This is the 0.618 fib retracement support and the parallel channel descending support.

BTC / USDT 2-hour chart | Source: TradingView

Count waves

The exact number of waves is not entirely clear. BTC has rebounded from the $ 28,600 low on June 22nd.

Even so, the upward movement is clearly a three-wave structure. Hence, it is unlikely to be the beginning of a new bullish impulse and a full or partial corrective structure.

BTC / USDT 6-hour chart | Source: TradingView

However, the downward move doesn’t look like the beginning of a downtrend that could be part of a complex corrective structure. Hence, it looks like another upward movement might be in sight, corresponding to the parallel channel described above.

BTC / USDT 6-hour chart | Source: TradingView

The wavenumber most likely suggests that any move since the June 22nd low is a correction. In this capacity, the price is currently in the second part of a correction which will then turn up towards the high of the range.

The current price level is suitable to initiate a bounce as this is the 0.618 Fib retracement level.

It is also possible to hit the June 26 low at $ 30,082 before moving higher. This is the most likely scenario at this point and will take price towards 0.786 fib retracement support.

BTC / USDT 6-hour chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page