Bitcoin Price: What to Expect After Rejection at $38,000?
Bitcoin is following a downtrend line. BTC is supported at $32,400. There are resistance levels at $41,300 and $44,700.
Bitcoin (BTC) price is rising after reaching a support level last Tuesday (8). The BTC is following a downtrend line and is potentially making its fifth attempt to break this resistance. BTC movement Bitcoin has been on the rise since Tuesday (8), after hitting a low of $31,000. The currency created a bullish engulfment on Wednesday (9) and peaked at $38,491 the following day. However, technical indicators do not confirm this trend reversal. While most are skewed to the upside, there are some of these indicators with mixed signals. The MACD is rising, almost entering positive territory, and the Stochastic Oscillator has made a bullish cross. There is strong medium-term bullish divergence on the RSI (blue). Despite this, the bullish seen on Thursday (10) also confirmed a bearish divergence (red), which is a strong sign of continuation of the downtrend. The BTC has to invalidate this divergence with a higher top to confirm a trend reversal pattern.
future moves The six-hour chart shows that the BTC is following a downtrend line since May 20th. On Thursday, the asset had its fourth failed attempt to break this line. Technical indicators for the period are more optimistic. The RSI crossed above the 50 line and the MACD is close to turning positive. A break of the line would take the currency to the next resistance levels at $41,300, $44,750 and potentially $48,200. On the other hand, the closest support area is found at $32,400.
wave count The movement since May 10th is a three-wave bull structure. Therefore, it is unlikely to be the beginning of a bullish momentum. Instead, it is potentially the A wave of an A-B-C flat correction, which would be contained within a bearish channel. So the most likely possibility is that wave C will drive the BTC to $44,050. This would give the A:C waves a 1:1 ratio and the price would hit the resistance line of the channel. If wave C extends, it could push the currency's price up to $51,764. At the moment, it is possible to determine whether the bull movement will extend or not. A break of the channel and a move above $47,000 would likely indicate that the downtrend has come to an end, while a bounce at the channel's resistance line would favor the possibility that BTC will eventually make further declines.
