Aug 4, 2022 04:30 A.M ET
By:AnalysisWatch
Bitcoin (BTC) has failed to initiate any kind of upside move after breaking out of a short-term falling wedge.
Bitcoin has been rising above an ascending support line since June 18. The line has been validated on numerous occasions, most recently on July 26. This led to a local high of $24,668 on July 30. Throughout this period, the daily RSI, which remains above 50, has also followed an ascending support line (green).
During the upward move, Bitcoin managed to break the $21,750 horizontal resistance zone and a descending resistance line that had held since late March. However, it has yet to initiate a significant bullish peak. Rather, it has been pulling back after the breakout.
There is a strong support level near $21,750, created by the ascending support line and a horizontal support zone. Current TradingView Chart Pattern for BTC/USDT
First, BTC may be trading within an ascending parallel channel, which is often considered a bearish pattern. As a result, an eventual breakout of the pattern would be the most likely scenario. This possibility is supported by the deviation (red circle) and subsequent decline below the $23,750 horizontal zone.
However, the price is still trading above the mid-channel line and seems to have validated it as support.
The possibility of a bullish breakout remains as long as Bitcoin is trading above this level.
Finally, the RSI is moving freely above and below 50, in what is considered a neutral trend signal.
Therefore, the six-hour chart offers a neutral outlook and does not help determine the direction of the next move. BTC/USDT Chart By TradingViewShort-term BTC Breakout.
The two-hour chart shows that BTC broke out of a descending wedge on August 3. The breakout occurred after the price bounced from the 0.5 Fib support level.
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