BTC failed at the $ 42,500 level we were in previous analysis defined as key resistance. At the moment, the price is in the short-term correction leg, and today we will look at how far the price can fall and what goals need to be pursued.
In the short term we may be at the local minimum. However, I expect the continuation of the correction leg and the first goal I will follow is the level of point of control $ 36,770. The price kept returning to this value during the two-month sideway structure. In the long run, we cannot consider a short-term output above $ 41,000 as the definitive end of this accumulation zone.
So first we need to identify rising lows and then we can consider ending the correction leg. The uptrend has still not seen a declining low, but it is likely to happen. Volumes are still minimal and RSI continues to divide negatively.
BTC has failed to overcome long-term resistance
However, if the current minimum is the last before the resistance breaks, we can continue to grow. But we have to beat $ 42,500 for that.
The level of $ 42,500 that BTC respected is the level that represents the long-term resistance operating from ATH, where a long-term 123 top formation pattern was formed a few months ago, and the combination of ATH and the subsequent declining maximum created this level.
Bullish target is at $ 46,200, but it’s not yet need to be monitored, until the price breaks through the definitively mentioned key resistance. It should also be borne in mind that we experienced a similar increase in the second week of June, when all the growth was also erased and the price continued in a sideway structure.