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BTC (BTC) Falls Below Range Lows After Prolonged Sideways Streak

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BTC (BTC) decreased on July 19, falling below the $31,300 horizontal support area that has been in place since May.

The next closest support level would be a potential double bottom at the $28,805 level.

BTC range breakdown

BTC had been trading inside a range between $30,300 and $40,550 since May 19. While it had fallen below the support area a few times, it did not reach a daily close below it. 

On July 19, it fell below the area once more and proceeded to reach a close of $30,839, which is the lowest since January. 

Even though there are multiple unconfirmed bullish divergences, technical indicators are bearish. The RSI and MACD are falling, and the Stochastic oscillator has made a bearish cross and is also moving downwards.

However, trading volumes on the breakdown have been low.

Trading range
BTC Chart By TradingView

A look at the weekly time-frame shows that the main support area is at $27,050. This is the 0.618 Fib retracement support level when measuring the entire upward movement since March 2020.

BTC long-term support
BTC Chart By TradingView

Channel breakdown

BTC had been decreasing alongside a descending parallel channel since June 29. 

Yesterday’s decrease caused a breakdown from the channel. In addition to this, the price did not bounce at the 0.854 Fib retracement support level at $29,925. The next potential support would be a double bottom at $28,784.

The two-hour RSI is extremely oversold, currently being at 23. This is the lowest it has been since June 8, when an upward move of more than 30% followed.

BTC channel
BTC Chart By TradingView

Wave count

The wave count indicates that BTC is in a flat corrective structure.  The downward movement since June 28 is extremely choppy and gradual, making it unlikely that it is a bearish impulse.

Flat corrections often retrace fully, therefore a potential double bottom scenario remains in play.

For a more detailed look at the longer-term wave count, click here.

BTC correction
BTC Chart By TradingView

For BeInCrypto’s previous BTC (BTC) analysis, click here.

The post BTC (BTC) Falls Below Range Lows After Prolonged Sideways Streak appeared first on BeInCrypto.

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