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After breaking down below it on May 10, bitcoin (BTC) is currently attempting to reclaim the $30,500 horizontal area and potentially validate it as support once more.
BTC has been falling at an accelerated rate since it broke down from an ascending parallel channel on May 5 (red icon). The downward movement led to a low of $26,700 on May 12.
The price has bounced since and is currently attempting to reclaim the $30,500 horizontal area (red circle). The area had previously acted as support since May 2021.
Whether BTC manages to reclaim it, causing the previous breakdown to be only a deviation, or if it gets rejected and falls, could very well determine the direction of the future trend.
The daily RSI movement supports the importance of the $30,500 horizontal area. The area also coincides with an RSI support turned resistance.
The RSI had been consolidating above the 35 region since April 11 (green icon), seemingly validating it as support. The breakdown from the channel also coincided with a breakdown from this level, and currently, the RSI is facing resistance from the 35 area (red icon).
Therefore, if BTC were to reclaim the $30,500 area and combine this with an RSI movement above 35, it would suggest that the intermediate trend is bullish.
This would align with the long-term wave count, which suggests that it is possible that it has reached a bottom.
Short-term BTC movement
The two-hour chart shows that the price has broken out from a short-term descending parallel channel and created its first higher low.
In this time frame, the main resistance area is at $31,800, created by the 0.382 Fib retracement resistance level. This area is also relatively close to the previously outlined $30,500 resistance.
If it manages to move above it, the rate of increase would be likely to accelerate.
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