Briefly –
- BTC has claimed the horizontal support zone at $31,300.
- The leading coin remains in a process to break out from a declining resistance line.
- For now, Bitcoin hovers in the C wave of the ABC corrective construction.
- BTC sustains its 22 July upticks, holding over the horizontal zone at $31.3K
At the moment, Bitcoin is in a declining resistance line that might lead to a near-term rejection before the asset extends its upside moves.
The Prevailing Ascent
Bitcoin had slight increases a day after a bullish engulfing candle on 21 July. The digital currency has formed an additional small bullish candle.
Bitcoin reclaims the horizontal support level over $31.3K.
Technical indicators showcase bullish attitudes. The MACD remains beneath 0, though it has formed two high momentum bars. The Relative Strength Indicator increases, almost over 50. Also, the stochastic oscillator turns bullish gradually, but it is yet to make a bullish cross.
At the moment, the closest resistance zone lies at $35.9K, the range’s middle.
Will Bitcoin Break Out?
According to the 6-hour price chart, Bitcoin has been on a declining resistance line since 29 June.
The coin visits the resistance line for the 4th time.
Keep in mind that the line corresponds with the .5 Fibonacci retracement at $32,975. With that, Bitcoin faces a convergence of resistance zones at the moment.
The 2-hr chart indicates price weaknesses. Bitcoin has shaped a double-top formation incorporating two upper wicks. Moreover, the MACD and RSI see bearish deviations.
With that, Bitcoin can experience price rejection and a drop in value.
In such a scenario, BTC will have its vital support zones at $31,530 (0.382 Fibonacci retracement), $31,100 (0.5 Fibonacci retracement) and $30,675 (0.618 Fibonacci retracement).
Wave Count
According to the wave count, Bitcoin trades in wave C of the A-B-C corrective framework.
If wave A-C attains a 1: 1 ratio, the developments might end around $37,278 high. However, with a 1: 1.61 ratio, the asset might claim a high of $42,181.
For now, the BTC network shows breakout signs as the crypto sustains its past day’s gains above $31.3K.