Bitcoin (BTC) Hovers Above Long-Term Horizontal Support
Bitcoin (BTC) is in the process of creating a bullish pattern above the $19,200 support area. The pattern is also combined with bullish divergence in the RSI.
BTC has been falling since reaching an all-time high price of $69,000 in Nov 2021. So far, the downward movement led to a low of $17,622 in June. The ensuing bounce created a long lower wick.
The bounce served to validate the $19,200 horizontal area as support. The area had previously acted as resistance in the 2017 all-time high and afterwards in Jan 2021. Now it is expected to provide support.
While there are no clear bullish reversal signs, the weekly RSI is sitting inside oversold territory at an all-time low of 25.
In the weekly chart, the closest resistance area is at $30,000.
Double bottom pattern
BTC has been following a descending resistance line since the beginning of April. More recently, the line caused a rejection on June 7, leading to the aforementioned low of $17,622.
Since then, the price has been showing bullish signs, since it is in the process of creating a double bottom. This is considered a bullish pattern that often leads to bullish reversals. Additionally, it has been combined with bullish divergence in the daily RSI.
If an upward movement follows, the closest resistance is at $23,250, created by the 0.382 Fib retracement resistance level. This also coincides with the descending resistance line.
Due to the confluence of these levels, a breakout from them is required in order for the trend to be considered bullish.
Short-term BTC movement
The six-hour RSI gives a somewhat similar reading to the daily one. While there is no bullish divergence in place, the indicator has created an ascending support line, which is still intact.
While the RSI is still below 50, it will soon reclaim the level if it continues following the ascending support line.
Finally, the two-hour BTC chart shows that the price has been trading inside a symmetrical triangle since the June low. While the symmetrical triangle is considered a neutral pattern, it would be expected to lead to a breakdown due to the fact that it is coming after a downward movement.
Therefore, whether the price manages to break out or down from the triangle will likely determine the direction of the future trend.
For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here
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