Bitcoin (BTC) has risen slightly since falling below $30,000 on May 10 and made its first short-term high.
Bitcoin has been rising within an ascending parallel channel since January 21st. After consolidating the interior for nearly five months, the price finally collapsed on May 5th. On May 10th, it reached its 2022 low of $29,730.
The price rebounded after bottoming within the $30,500 horizontal support area.
Although not confirmed yet, there is potential bullish divergence in the daily RSI.
If divergence is catalyzing the uptrend, the nearest resistance zone is $36,900. This target is the 0.382 Fib retracement resistance level when measuring the overall decline. Moreover, it is also a support line for the aforementioned channel.
The 2-hour chart shows that BTC is trading below the downward resistance level since May 6. This line has been verified multiple times, most recently on May 11th (red icon).
In the event of a breakout, the main resistance area is between $33,700 and $34,900. This target range corresponds to the 0.382 and 0.5 Fib retracement resistance levels.
The 2-hour RSI has already broken out of its bearish resistance, so prices are likely to follow soon.
The most likely wave number suggests that BTC is correcting inside the ABC correction structure (red) since reaching an all-time high of $69,000 on November 10, 2021. In the chart below, the lower wave counts are shown in black.
The first potential target for the bottom of the overall correction is $25,700. This goal gives waves A and C a 1:0.61 ratio.
Click here to view BeInCrypto’s historical Bitcoin (BTC) analysis.
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