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2021-08-06 15:06:35
Bitcoin has been on the rise since August 5 and is back inside the $40,550 resistance area, which has been in place since May 19.
Bitcoin may be in the process of completing a retracement correction after the initial drop. If true, BTC could be rejected by the area and drop afterwards.
BTC is back at the top of the range
BTC hit a low of $37,332 on Aug. However, immediately began to rise, making a very long lower low in the process and reaching a bullish close at $40,862.
Bitcoin is currently trading in the high range at $40,550. The resistance zone has been in place since May 19, except for deviations above it between July 30 and August 2.
Technical indicators for BTC are slightly neutral. The MACD has produced a higher momentum bar, but it looks like it is starting to fall again. Both the RSI and the Stochastic are bullish but showing that bearish momentum may be forming.
Future movement
The H6 chart shows that the price recovery started after BTC reached the 0.382 Fib retracement support at $37,525 and created a double bottom.
The coin is currently facing minor resistance at $41,000. This area continuously acts as both resistance and support (red and green symbols).
While the MACD is rising, the RSI is neutral and is at the 50 line.
If a rejection occurs, the next support will be found at $34,390.
Number of waves
The wave count shows that BTC is in wave two (black) of a bearish impulse that began with a high of $42,599 on Aug.
If accurate, BTC is currently in the process of completing a second sub-wave at the 0.618 Fib retracement resistance of $40,750. This is also a horizontal resistance zone.
A rise above the aforementioned $42,599 high would invalidate this particular wave count.
Synthetic CHK
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