The price of BTC has rebounded from the USD 19,200 long-term support area. It has broken out of the descending resistance line in place since March.
The price of Bitcoin (BTC) has not stopped dropping following its all-time high price of nearly USD 69,000 in November. Since then, it reached a low of USD 17,622 in June, after which it has risen to a high of USD 24,668.
According to the weekly RSI, which offers a bullish outlook, it has left its oversold region and is at 36. However, it maintains the same bearish trend held since the all-time high. The price needs to break the current level to confirm the bullish reversal.
The rebound in the price of Bitcoin has allowed it to validate its USD 19,200 support in the sideways zone. The area had previously acted as the highest all-time resistance.
A Breakout in the Price of Bitcoin Is Underway
The daily chart shows a bullish outlook as the price of BTC has left a descending resistance line in place since late March.
In addition, it broke out of the USD 21,750 sideways area and validated it as support.
Then the daily RSI moved above 50 and bounced off its ascending support trendline.
If the increase continues, USD 29.370 would be the closest resistance area, created by the 0.382 Fibonacci retracement resistance level.
The 6-hour chart reveals that this assessment shows the breakout of a short-term descending resistance line.
BTC is trying to find support above the 0.382 Fibonacci retracement support at USD 23.175. The price might drop toward the 0.5 and 0.618 Fibonacci retracement support levels at USD 22,700 and USD 22,240, respectively.
The Short-Term Wave Count of BTC
According to the most likely short-term wave count, BTC has started wave three of a five-wave upward move. Since the former is usually the sharpest and highest of the five, there might be a considerable rise.
There is a sub-wave count in black, suggesting that the price has completed sub-wave two. After that, a significant rise in the value of the cryptocurrency would follow.
That resembles a 1-2/1-2 wave formation, so a drop below the ascending support line and the 0.618 Fibonacci retracement support level would invalidate this count.
Bitcoin is trading at around USD 23,311 and has accumulated a 3.1% gain over the last week. Its daily trading volume is above USD 39.70 billion, while its market capitalization is about USD 445.46 billion, according to CoinGecko.
By Alexander Salazar
