Bitcoin (BTC) decreased significantly on July 5, making a bearish engulfing candlestick within the course of.
This brought about a breakdown from a short-term help line. Nevertheless, BTC has reclaimed the road since.
Bearish engulfing candle
After BTC created a bearish engulfing candlestick on July 5, it proceeded to achieve a low of $33,125 earlier than bouncing.
Technical indicators are bearish. The MACD histogram has created a decrease momentum bar (crimson icon) that would give a bearish reversal sign if there’s one other unfavorable day by day shut.
Whereas the Stochastic oscillator has made a bullish cross (inexperienced circle), the RSI continues to be beneath 50.
The closest resistance space is at $40,550 whereas the closest help stage is discovered at $31,400.
Quick-term BTC breakdown
The 2-hour chart gives a blended outlook. The beforehand outlined bearish engulfing candlestick brought about a breakdown from a short-term ascending help line.
Nevertheless, BTC has reclaimed the help line since.
As well as, technical indicators present blended readings. That is particularly noticeable within the RSI, which is freely transferring above and beneath 50. It is a signal of an undetermined development.
Nevertheless, a better look aligns with the bearish outlook.
Firstly, the previous decease seems impulsive (highlighted in crimson).
Secondly, BTC has been rejected proper on the 0.618 Fib retracement stage at $34,885. Due to this fact, a lower again beneath this stage could be the almost definitely state of affairs.
For the whole wave count, click on right here.