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BTC analysis – correction leg does not end. Where are the support zones?

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BTC continues in correction and the market price is lower than the last minimum of the rising leg. The correction is therefore confirmed and we will monitor how far the spill can continue. After definitive respect for the main resistance thus the long-term two- and half-month structure remained intact. Will all growth be erased, as it was in June?

BTC does not yet indicate the end of the declining leg. The first target from which bounce can occur is the level at the point of control of the entire sideway structure at $ 36,760. However, even this value does not necessarily mean the end corrections. It will be important to reach higher local minima after any reflection. Another long-term support is located at $ 33,000.

BTC / USD 4H.  Source: TradingView
BTC / USD 4H. Source: TradingView

In addition, if we want to think about reversing the trend, we will need it growing volumes compared to volumes during correction. In principle, there may not be 123 bottom formation, but just an immediate reflection as at the last long-term minimum.

BTC needs to cool down

RSI is also approaching the oversold phase. However, I do not expect that the RSI and also the price will be reflected immediately. Rather, RSI will create a positive divergence somewhere on the verge of oversold. This will be an indicator that we are approaching a local minimum. For the price, however, this phase can easily mean a drop of another few thousand. The situation was similar during the week of 14-21 July and 18-18 June.

However, the resistance that BTC respected at $ 42,500 is dynamic and moves over time. It is getting lower and lower. It is currently located at about $ 41,500. However, until the price rebounds and this resistance is tested, it is quite possible that it will be much lower.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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