Bitcoin has broken out of a short-term and long-term descending resistance line. The daily RSI has bounced off its ascending support trend line. BTC has support and resistance at $21,600 and $29,370.
Bitcoin (BTC) has broken through a short-term resistance level, while its daily RSI has returned to bullish territory.
Bitcoin had been trading below a descending resistance line since early April. This move lower led to a long-term low of $17.622 on June 18.
Bitcoin has been moving mostly higher ever since and broke out of the line on July 18. Although the price initially fell, it managed to recover significantly on July 27 and created a large bullish candle. In turn, this validated the $21,600 area as support.
More importantly, the daily RSI bounced off its ascending support line (green icon) and moved above 50 once again. This is considered a bullish sign and means that the bullish structure is intact as long as the RSI is trading above the ascending support line.
If the up move continues, the nearest resistance area would likely be found at $29.370, created by the 0.382 Fibonacci retracement resistance level.
Short term break
The six-hour chart supports the daily time frame finding and shows a break of a shorter-term descending resistance line. Subsequently, BTC managed to move above the 0.618 Fibonacci retracement resistance level at $22,960.
Finally, the 6-hour RSI broke a descending resistance line and moved above 50, which are considered signs of an uptrend.
BTC Wave Count Analysis
The most likely short-term wave count suggests that Bitcoin has completed wave two (yellow) of a five-wave uptrend. Within the pattern, the count of subwaves (black) formed a complex W-X-Y corrective pattern, in which the W and Y waves had an exact 1:1 ratio.
The surge on July 27 is probably the start of wave three of the same move. The sub-wave count is shown in black.
As of July 27, Bitcoin was trading inside a strong support area at $21,000, created by the 0.5 Fib retracement level and a horizontal support area.
It previously drifted below it on July 26 before retrieving it the next day. Its validation as support would be a strong signal that the short-term correction is complete.
Bubble Alert – Bitcoin Today
At the time of writing, Bitcoin rises +0.78% to 21,377.84 USD/BTC. Its price is up +0.78% intraday today, trading at $23,148.91.
Here are some more stats to consider:
Evolution of Bitcoin in 2021 = +59.71%.
Evolution of Bitcoin in 2022 = -50.91%.
Evolution of Bitcoin in June 2022 = -39.05%.
Evolution of Bitcoin in 1 week = -0.39%.
Evolution of Bitcoin in 1 year = -42.22%.
After all, is it profitable to be a Bitcoin miner at the current price?
Decrypt published an interesting article that explores beyond the headline number and spoke with the CEO of mining company CleanSpark (CLSK) on the subject.
The JPMorgan report emphasized that cost-cutting can reduce pressure on miners to sell their Bitcoin holdings. The report also attributed the lower production costs to a “strong effort” by miners to maintain profitability by deploying more efficient mining equipment. Related to the latter idea, the report casts doubt on the assumption that a significant number of lower-efficiency miners have gone offline.
It is worth considering that the war in Ukraine has disrupted energy markets. And because miners without power contracts face higher fees in the current environment, and the price of Bitcoin has fallen substantially, there is likely to be a marginal loss in total network hash rate at the low-efficiency endpoint. . For example, at Bitcoin prices below $24,000, popular Bitmain S9 miners are likely to be unprofitable when paying more than $0.04/KWh for electricity.
All in all, the best advice is to conduct your own research before making investment decisions.
By Audy Castaneda
