11:48Bitcoin (BTC) Resumes Dip Back to Support Levels
Bitcoin trading range
The upward movement was preceded by significant bullish divergence in the MACD, RSI, and Stochastic oscillator. However, neither has a bullish reading yet. The RSI is just below 50 and the MACD signal line is still negative. Furthermore, the Stochastic oscillator has already made a bearish cross.
The BTC price fell yesterday but did not create a bearish engulfing candlestick. Nevertheless, it seems to have resumed its downward movement today.
The main resistance area is at $40,550. This is a horizontal resistance and the 0.382 Fib retracement level.
Future BTC movement
There is strong support at $32,640 (the 0.618 Fib retracement support level) and the potential ascending support line of the wedge.
The MACD and RSI are both decreasing, supporting the possibility that the price will fall towards this level.
While corrective structures are often contained inside parallel channels, the high failed to reach the resistance line of the channel (red arrow). In addition, BTC has now fallen below the midline of the channel, another bearish sign.
A breakdown from the channel would likely confirm the downward trend and indicate that BTC will decrease towards $23,600 and potentially $19,800.
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