Bitcoin (BTC) bounced significantly after reaching a low of $20,855 and has possibly completed its corrective structure.
BTC has been falling since it broke down from an ascending support line on June 10 (red icon). The decrease has been swift and led to a low of $20,855 on June 14. This is the lowest price since Dec 2020.
The price bounced on June 14 and created a doji candlestick with a long lower wick (green icon). However, despite the bounce, the RSI is still following a descending resistance line. A breakout from this line would be required on order for the bounce to be considered a reversal.
The upward movement since the aforementioned low looks impulsive, due to it being a five-wave increase. Additionally, the price has broken out from a short-term descending resistance line.
Currently, it is facing resistance at $22,650. An increase above this level and its subsequent validation as support would go a long way in suggesting that the bottom is in.
BTC wave count analysis
The short-term wave count suggests that the price has completed a five-wave downward movement (black) measuring from the end of March.
The $20,825 low and subsequent bounce were made at a confluence of Fib targets between $21,850 and $22,650. The targets are given by the 1.61 external Fib retracement of wave four (black) and the length of wave one (white).
So, it is possible that a bottom has been made.
As for the long-term count, it is possible that BTC has just completed wave four (white) of a long-term five-wave upward movement that began in Dec 2018.
A decrease below the wave one high at $13,880 (red line) would invalidate this particular wave count.
For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here
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