BTC still continues the growing trend, but already in previous analysis we said this trend would weaken. As of July 21, a growing wedge has been formed and the fifth Elliot wave has been completed. At night, BTC bounced off the wedge support level, but this reflection was not yet strong and volumes are also missing. Will there be a few days of correction, or will the market continue to grow?
BTC at the level of $ 50,500 it reached the peak of the growing wedge, because it is the fifth Elliot wave that originated in this pattern. Leg 2 and 4 created corrections with a force of 38.2%, which also confirms the model growing wedge. However, the price was reflected in the support of this flag on level $ 47,600, but the reflection is still very weak and is not supported by volumes.
From this point of view, we can conclude that the growing trend is weakening and volumes decreased throughout the wedge. We experienced a similar scenario on the lap, which ended at ATH. The only difference was in the inclination of the wedge. Therefore, if there is no sharp increase in volumes that will support price growth, it is possible that BTC will not maintain support in the end. Then we would monitor the support at the level of 38.2% retracement of the whole wedge, at worth $ 42,500.
In the long run, BTC is still bullish
If the zone around is tested $ 41,000 to $ 42,500, there would be an ideal shopping opportunity. This would be a test of the previous long-term resistance, which separates the accumulation zone from the growing trend. Retracement 38.2% is also the first target when closing the wedge.
RSI as well as volumes it creates a negative divergence throughout growth. The vertical yellow lines always meant a local minimum within the wedge, on the RSI it represents a value from 40 to 43 points. We will therefore monitor this level as support for RSI.
