If the price keeps rising, USD 29,425 would be the closest resistance, the Fibonacci retracement resistance level of the latest bearish move. Bitcoin is creating a bearish candlestick at a confluence of resistance levels of the Fibonacci retracement resistance area between USD 21,900 and USD 22,600.
BTC has traded just above the USD 19,400 support zone for around three months. In December 2021, that relevant area served as the most considerable resistance of all time.
After rallying sharply last week, Bitcoin created a lower long wick, which signals buying pressure. The price also reached a distinctly bullish close of USD 21,826. Since the weekly high and close were too close, many view it as a bullish sign since sellers have not driven the price lower.
The weekly relative strength index (RSI) generated bullish divergences, leaving the oversold territory and the all-time low region.
If the price of BTC keeps rising, USD 29,425 would be the closest resistance. That is the 0.382 Fibonacci retracement resistance level of the latest part of the move to the downside.
The following resistance would be at USD 37,300, the 0.382 Fibonacci retracement resistance level of the downward move after the all-time high.
The Price of Bitcoin Might Continue Increasing despite the Bearish Trend
According to the daily chart, the price of Bitcoin is creating a bearish candlestick at a confluence of resistance levels. The 0.5-0.618 Fibonacci retracement resistance area is between USD 21,900 and USD 22,600, while the previous parallel ascending channel serves as a support line.
However, the daily RSI has just moved above the 50 lines that previously provided resistance, suggesting a bullish trend. Despite that situation, the price needs to resume the channel and the resistance area at the 0.5-0.618 Fibonacci retracement.
The BTC Wave Count Analysis Indicates Further Upward Move
The wave count analysis of the Bitcoin price suggests the fourth wave of a five-wave upward move beginning on August 7th.
After a short correction, the price might rise toward the 0.618 Fibonacci retracement resistance level at USD 22,700.
The hourly RSI also supports this possibility, generating a bearish divergence, which usually occurs before slight declines.
Meanwhile, the Bitcoin Hash Rate Reaches an All-Time High
The Bitcoin hash rate recently reached a new all-time high of 281.79 million. In addition, the following halving of the network may occur in the fourth quarter of 2023.
The developers of the Bitcoin blockchain have moved up the next halving as the hash rate has reached a new record level. Its raw value of 281.79 million indicates that more people are joining, signaling the good health of the network. The event, scheduled for May 2024, will now occur in the last quarter of 2023 due to the current levels.
The distribution of mining rewards reduces by half during every Bitcoin halving. That event occurs after the extraction of 210,000 blocks, whose date the presence of more miners contribute to bringing it forward.
The Bitcoin network will reduce block rewards to 3,125 units with the next halving. The process will continue until 2140 with the mining of all 21 million coins, which will cause net deflation and a rise in value.
By Alexander Salazar
