Bitcoin (BTC) has been trending upwards since June 18 and is currently attempting a high above $21,000.
BTC has been falling below a descending resistance line since the beginning of April. The line caused rejection on June 7 and reached a low of $17,622 on June 16. Since then the price has been moving upwards.
The RSI has now moved out of its oversold zone by moving above 30 (green sign). This is usually a sign that the trend is slowly accelerating.
If the upward move continues, the nearest resistance area will be $23,275 formed by the 0.382 Fibonacci retracement resistance level, which is also coinciding with the above resistance line.
A price breakout above the area and the line would be a sign that the trend has accelerated.
short term btc breakout
The two-hour chart is showing that the price broke out of a short-term reversal head and shoulders pattern. This is a bullish pattern that often moves upwards. Hence, it supports the continuation of the upward move towards the resistance mentioned earlier.
Currently, the price is in the process of validating the descending resistance line (green icon) as support.
The six-hour chart also supports this possibility as a move below $20,150 looks like a divergence. The sector is now expected to provide assistance.
If BTC manages to make a higher low, it will pave the way for a continuation of the upward momentum. If the RSI also rises above 50 then this increase will be more likely.
wave count analysis
There are still many possibilities for long-term wave counts. For short-term calculations, the main possibility is that the price has completed a five-wave downward movement since July, and another has begun on June 18.
Currently, price is trying to complete an ABC corrective structure above the 0.382 to 0.5 Fibonacci retracement support level of $19,600 to $20,100.
If it manages to do so, it could start a move towards the resistance area at $23,275.
For Be[in]Previous Bitcoin (BTC) Analysis of Crypto, click here