Bitcoin (BTC) is currently retracing after reaching a high of $21,723 on June 21. It has yet to create a short-term higher low.



BTC has been moving upwards since reaching a low of $17,622 on June 18. The next day, the price created a bullish engulfing candlestick (highlighted). This is a bullish pattern, in which the entire drop from the previous day is negated with one large bullish candlestick.



The increase led to a high of $21,723 on June 21, before a slight retracement.



The daily RSI is currently attempting to move above 30 (red circle). If it occurs, this would be considered a sign that suggests momentum is gradually turning bullish.



BTC/USDT Chart By TradingView



BTC bounces from lows



The six-hour chart shows that the ongoing bounce was preceded by a very significant bullish divergence in the RSI (green line). The signal would gain even more legitimacy if the RSI were to move above 50. This is a line that is considered a threshold for the beginning of a bullish trend. 



If so, the closest resistance area would be at $23,000, created by the 0.382 Fib retracement resistance level and a horizontal resistance area.



BTC/USDT Chart By TradingView



Moving closer, the two-hour chart shows that BTC is trading inside the 0.382-0.618 Fib retracement support levels. The levels create a support area between $19,200 and $20,150.



Therefore, in order for the upward movement to continue, the price has to create a higher low inside this area.



BTC/USDT Chart By TradingView



Wave count analysis



There are several possible long-term wave counts , the majority of which suggest a bounce is likely.



Consequently, the most likely short-term count suggests that the five-wave downward movement that began in April is now complete (black). The sub-wave count is given in yellow.  



The June 18 low was made at a confluence of Fib levels, more specifically the 0.618 length of waves one and three (black) and the 2.61 external Fib retracement on wave four (white).



BTC/USD Chart By TradingView



Nevertheless, it is worth mentioning that a proper Fib ratio is not in place when looking at the entire decrease since the all-time high.



In this case, the potential A-B-C correction would need to go all the way down to $12,260 in order to give waves A:C a 1:1 ratio. 



BTC/USD Chart By TradingView



For Be[in]Crypto’s previous bitcoin (BTC) analysis ,  click here
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