Bitcoin Reclaims $32,000 After Substantial Pump

© Reuters. Bitcoin (BTC) Reclaims $32,000 After Substantial Pump

increased considerably on July 21, creating a bullish engulfing candlestick and reaching a high of $32,858.

BTC is following a shorter-term descending resistance line. If it can break out above this line, it could be the catalyst for a sharp upward move.

BTC reclaims range

BTC increased significantly on July 21. After falling to a low of $29,278, it began a rapid upward move that led to a high of $32,858.

This created a bullish engulfing candlestick. In addition, it reclaimed the $31,300 horizontal support area that previously had been in place since May 19. This is a bullish development since the area is now expected to act as support again.

However, technical indicators have not turned bullish yet.

The range high is found at $40,550.

Future movement

The six-hour chart shows that BTC has been following a descending resistance line since June 29.

On July 21, it was rejected by this resistance as well as the 0.5 Fib retracement resistance level at $32,925.

If it can move back above this line/level, it’s likely to move upwards at an accelerated rate due to the lack of overhead resistance.

The MACD and RSI are both moving upwards. The latter is above 50 while the former is close to crossing into positive territory.

Wave count

The wave count indicates that BTC is currently in the C wave of a longer-term A-B-C corrective structure.

The two most likely levels for the top of the upward move are at $37,278 and $42,181. The first target gives waves A:C a 1:1 ratio while the second gives them a 1:1.61 ratio.

See also  Vancouver victims lose almost $2 million in cryptocurrency scams in one week -

The upward move looks impulsive, increasing the likelihood that it could be a C wave.

Continue reading on BeInCrypto

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here