September 26, 2023

Bitcoin (BTC) has failed to initiate any kind of upward movement after breaking out of a short-term bearish wedge.

Bitcoin has been rising above an ascending support line since June 18. The line has been confirmed multiple times, most recently on July 26th. This led to a local high of $24,668 on July 30. Throughout this period, the daily RSI, which is still above 50, has also followed an upward support line (green).

During the upside move, Bitcoin managed to break out of the horizontal resistance area of ​​$21,750 and a descending resistance line previously in place from late March. However, it has yet to start a major uptrend. Instead, it has been repositioned since the outbreak.

There is a strong support level near $21,750, created by the ascending support line and a horizontal support area.

Current pattern

The six-hour chart provides no indication of trend direction.

First, it is possible that BTC is trading within a bullish parallel channel, which is often considered a bearish pattern. As a result, an eventual collapse from the standard would be the most likely scenario. This possibility is supported by the divergence (red circle) and subsequent decline below the horizontal area of ​​$23,750.

However, the price is still currently trading above the midline of the channel and has seemingly validated it as support. The possibility of a bullish breakout remains as long as Bitcoin trades above this level.

Finally, the RSI freely moves above and below 50, which is considered a sign of a neutral trend.

Thus, the six-hour chart provides a neutral perspective and does not help determine the direction of the next move.

BTC short term split

The two-hour chart shows that BTC broke out of a bearish wedge on August 3rd. The breakout occurred after price rebounded from the 0.5 Fib retracement support level.

However, Bitcoin failed to initiate any significant upward movement and is trading back near the 0.5 Fib retracement support level. This is a critical level because the 0.618 Fib retracement support level at $22,225 could trigger a bounce, but there is no horizontal support below it until $20,700.

For Be[in]Crypto’s previous Bitcoin (BTC) analysis, click here

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