BTC has fled from an inverse pattern; the daily RSI escaped from a descending resistance line.
Bitcoin (BTC) has been moving upwards since June 18 and finally managed to step away from an inverse pattern on July 7.
BTC has been decreasing below a descending resistance line since April 5. The situation caused a slight rejection on June 7, which led to a rate of around $17,622 on June 18. The price suffered a couple of bounces afterward and has been increasing its price since that event, creating a higher low on July 3.
Another curious improvement is the daily RSI escape from a descending resistance line. The line had previously been in the same place since March 29. Such RSI escape from that position often precedes a price breakout. So, BTC has a slight possibility to step away from its line, which gets positioned at $22,500.
If a breakout takes effect, the price could suffer an increase to $29,400, the 0.382 Fib retracement resistance level.
Since April 2021, the RSI has broken loose from the descending trendlines twice; the first time RSI experienced this phenomenon led to a 111-day upward movement in which the price experienced a high peak registered at 121%; the second one led to a 29% upward movement that got materialized over 60 days.
Short-Term Breakout
The six-hour chart presents that BTC went away from what looks like an inverse pattern. This situation shows an optimistic scenario that often leads to optimistic trend reversals.
A movement that goes through the entire height of the pattern would take the price to $25,000. Currently, the price is at the $22,700 resistance area, which takes effect simultaneously with the previously defined descending resistance line. If the price manages to get clear, the rate of increase will experience an increasing rate.
Future BTC movement
Since the descending resistance line began on April 5, the price went through a five-wave downward movement.
As for a Bitcoin’s potential price path if it continues along the downtrend, Crypto Market Analyst Tony revealed through a study what could be a worst-case scenario leading BTC to bottom out to a figure of $12,000.
The analyst said he does not think users would see the start of the next push until late next year and a new bull run peak until 2024-2025. He said he got already prepared to deal with $22,000-24,000 prices.
By; Jenson Nuñez
