Bitcoin (BTC) surges breaking short-term resistance levels and the daily RSI following the Fed’s verdict and is back in bullish territory.
BTC has been falling along the descending resistance line since early April. As a result, on June 18, Bitcoin formed a long-term low of $17,622.
After that, the price rallied on July 18 and made a bullish break at this line. At first, the BTC rate dropped again, but on July 27, in the context of the US Federal Reserve’s monetary policy meeting, it managed to make a spectacular rally and form a large bullish candle. Thus, this confirmed the $21,600 area as support.
Very importantly, the daily RSI has bounced off the ascending support line and moved above the 50 mark again. This is considered a bullish signal and means that this bullish structure will continue as long as the RSI remains above the ascending support line.
If the growth continues, the market could take a course towards the closest resistance level in the $29,370 area.
Short term advance
The image in the chart supports the analysis results of the daily period. Here you can see a bullish breakout of the short-term descending resistance line. After the breakout, BTC managed to overcome the barrier at $22,960.
At the same time, the RSI on the 6-hour chart has also broken above the descending resistance line and the 50 mark. These are all signs of an uptrend.
BTC wave analysis
Meanwhile, the most likely short-term wave analysis scenario suggests that Bitcoin has completed wave 2 of the five-wave bullish structure.
Subwave analysis within this pattern demonstrates the complex W-X-Y corrective structure formed, in which the ratio of W:Y waves is exactly 1:1.
The July 27 price rise is likely the start of wave 3 of this structure. Subwave analysis is shown on the chart.