Bitcoin (BTC) has been strengthening since June 18 and finally managed to make a bullish breakout from the inverted head-and-shoulders pattern.
Bitcoin (BTC) has been declining since April 5 along the descending resistance line. On June 7, the price rebounded from that level, which led to a low of $17,622 on June 18.
Subsequently, the price began to grow and formed a rising low on July 3.
Interesting dynamics is demonstrated by the daily RSI, which managed to break through the descending resistance line. Previously, it had been on the chart since March 29. Such bullish RSI breakouts often precede a price bullish breakout. Therefore, it is possible that the BTC will also break its downward resistance line. Right now, it is around $22,500.
Such a bullish breakout can lift the bitcoin to $29,400 (the Fibo level of 0.382 correction).
A short-term bullish breakout of BTC
On the 6-hour chart, you can see that the BTC exchange rate made a bullish breakout from the assumed inverted head-and-shoulders pattern. This pattern is traditionally considered a bullish pattern and is often a precursor to bullish trend reversals.
The growth of the price by the full height of this pattern can lift the market to the area of $25,000. The price has now reached the $22,700 resistance area, which coincides with the aforementioned long-term downward resistance line.
A clean breakout of this area could accelerate the growth rate of the price.
The results of the wave analysis suggest that the price, moving along the descending resistance line built from April 5, completed the formation of a five-wave bearish structure (black color). In addition, within the framework of the fifth wave the structure of five sub-waves was formed (yellow color).
As a consequence, we got reasons to expect a significant growth of the rate of BTC, which is confirmed by the picture on the daily chart.
The results of the most likely long-term wave analysis also suggest that the price has already reached the base.