Bitcoin (BTC) Fails to Develop Growth after Bullish Breakout

Bitcoin (BTC) has been trying to start a steady growth since May 19, but so far these attempts can not be crowned with success.

For the further development of the uptrend of BTC, the formation of an increasing minimum near the current price level is extremely important.

Bitcoin not can develop rally

Bitcoin (PTS) hit local lows around $30,000 on May 19 and has been rising ever since. As a result, on May 26, the price reached a local high of $40,841, but from here it began to draw down again.

Despite the decline, technical indicators are becoming bullish. The MACD signals a bullish reversal and has formed four consecutive rising momentum bars. The RSI index is rising and seeks to form a second rising low. And finally, the stochastic oscillator is also showing signs of growth.

Are you a bull on the PTS? Share your opinion in the comments and join the discussion in our Telegram channel!

Chart PTS. A source: TradingView

Bullish breakout BTC

On the 6-hour chart, bitcoin made a bullish breakdown of the descending resistance line. Although the market failed to develop a rally, the price continues to hold above this breakout level and could potentially turn it into support.

The key resistance levels are located at $41,200 and $41,850. These are the Fibo levels of 0.382 and 0.618 of the correction, respectively.

Chart PTS. A source: TradingView

On the 1-hour chart, you can see that bitcoin is trading inside a descending parallel channel. This can be considered as a corrective price trend.

At the time of writing, the price was directly in the area of the support line of this channel. Earlier, it managed to touch the Fibo 0.5 correction level at $36,000.

In this regard, to continue the rally, it is extremely important that the MTC forms an increasing minimum at the current levels.

Chart PTS. A source: TradingView

BTC Wave Analysis

The results of the wave analysis suggest that the decline in the market most likely represented a corrective price structure A-B-C with the ratio of waves A:C as 1: 1.61.

This scenario will be confirmed if the price rises above the low of wave A at $47,004 (red line).

Chart PTS. A source: TradingView

However, there is still a possibility that this decline represented a bearish impulse, and now bitcoin is in wave 4.

In this case, the price can be traded inside a symmetrical triangle, and then it is impossible to exclude a fall in the direction of the $33,000 area, from where a rebound will occur again.

Chart PTS. A source: TradingView

It is also possible to continue the decline in the direction of the long-term Fibo level of 0.618 correction at $27,152.

In this regard, the short-term price dynamics will now be crucial. A drop to $33,000 could signal that a longer-term correction is not yet complete.

PTS schedule. Source: TradingView

Read the previous one bitcoin forecast and other cryptocurrencies can here.

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