BTC price is based on resistance. Shall we end the corrective leg?
2 min readAlthough BTC is in a growing leg, growth is slowing and the market price has hit a resistant zone. The question therefore remains whether to value this resistance manages to break through. On the other side the price still did not break the sideway structure, in which the price has been around for two months.
BTC is trading at $ 32,500 at the time of writing, which is just below the point of control level of $ 32,820. If we want to think about breaking through this resistant area, volumes must increase. These rose slightly after reaching the last local low to $ 29,300, but now there needs to be a further increase.
If the price really managed to go above resistance, so we have another target at $ 34,500. At the same time, the declining leg would definitely end and we would also break the resistance from local highs. However, we would still be left in the sideway structure that started at the end of May.
BTC may fall for another month
On the other hand, it is necessary to take into account also opposite scenario because volumes are not rising yet. In that case, the price would respect resistance and a local maximum would be created on it. Then we would probably continue the declining leg and the descending triangle, which has been in effect since June 26, would continue.
In this case, we would be watching mainly support at $ 29,300 and the price should not set lower local minimum. This descending triangle has room to continue into mid-August. It has not been violated yet, but now we will monitor whether the price manages to overcome the mentioned resistance.
