Bitcoin (BTC) Forms Another Bullish Engulfing Candle Following Upswings Towards $21K

Briefly –

  • Bitcoin has printed a bullish engulfing candle in its daily chart.
  • The crypto follows a downward resistance line.
  • Immediate resistance stands at $23,275, then $26,750.

The bellwether crypto formed its 3rd bullish candle since the 18 June low, now contemplating upside towards the resistance zone at $23,275.

Bitcoin remained elevated since hitting the $17,622 lows on 18 June. The following day saw it forming a bullish engulfing candle pattern. Furthermore, the assets saw another bullish engulfing candle set up on 23 June, following the 22 June brief decline. That signals upside movements for the world’s largest cryptocurrency.

Keeping that narrative would see BTC heading towards the nearest resistance at $23,275 before climbing to explore the hurdle at $26,750. Those are 38.3% and 61.8% Fibonacci resistance zones, respectively.

Ongoing Bitcoin Rebound

The daily price chart indicates BTC has followed a downward resistance line since early April. The line stands at $26,750, matching the previously plotted 61.8% Fibonacci retracement resistance area. The daily Relative Strength Index has finally climbed beyond 30, escaping the oversold region. Thus, the RSI and BTC price should overcome their resistance zone to confirm bullishness in the ongoing uptrend.

Bulls Ready to Overcome $21.5K

BTC’s latest leg up has the leading crypto hovering around the resistance zone at $21K. Yesterday’s bullish candlesticks predict a minor upcoming price bounce for the asset.

Meanwhile, the upside narrative emerged as bears seem exhausted following the latest bearish wave. That might welcome a bullish momentum that likely pushed BTC beyond the $21.5K psychological level on the 1hr charts.

Yesterday’s 7% plunge had BTC printing a daily price floor of around $19.4K. For now, buyers boast the chance to dominate and trigger minor returns on the daily price chart. Nevertheless, a concrete failure might see the crypto heading towards the $17K mark as bears still control market forces.

Final Thought

Repeated drops to sub-$20K see BTC/USD on a potential bull trap. Nevertheless, a detailed outlook shows the minor rebound might present a lucrative day trading opportunity. Authorizing the rebound would see BTC exploring $22,00.

Meanwhile, the 20-day Exponential Moving Average will prevent further bullish hopes, underpinning BTC beneath $24.7K. Investors shouldn’t expect upswings beyond $25K soon as the 50-dau MA boasts colossal sell orders ready to defend the prevailing bearish forces in the marketplace.