top of page

Title: Bitcoin Attempts to Breakout From Short-Term Bullish Pattern

  • Writer: analysiswatch
    analysiswatch
  • Aug 3, 2022
  • 1 min read


Aug 03, 2022 03:54 AM ET


By: AnalysisWatch


Bitcoin is currently making a third attempt to break the short-term downward wedge to resume its upward movement.


Bitcoin has been in a downtrend since hitting a high of $24,669 on July 30. So far, the downward movement has been contained within the descending wedge.


The descending wedge is usually considered a bullish pattern, which means it leads to breakouts in most cases.


On August 2, prices bounced off the 0.5 Fib retracement support level at $22,650 and headed higher, coinciding with a horizontal support area. BTC is now attempting to break above the descending resistance line.


If BTC breaks the wedge, the nearest resistance zone will likely be reached at $23,650. That target is the 0.5 Fib retracement resistance level.


The six-hour chart shows that BTC has been trading above the rising support line since June 19, having last bounced off it on July 26. This led to the aforementioned high of $24,669 on July 30.


Initially, it looked like Bitcoin had broken above the $23,750 area, but it has since dropped below it, turning it into just an outlier.


The most likely wave account suggests that Bitcoin has begun a third wave of a five-wave uptrend. A significant upside is expected if the count is correct.


The sub-wave count is shown in black. It shows the price completing sub-wave two, after which an equally large sub-wave three is likely to follow.


This appears to be a 1-2-1-2 wave formation, but a decline below the rising support line and the 0.618 Fib retracement support level at $22,230 would invalidate this particular wave count.


Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page