Bitcoin has been navigating a complex corrective phase since its all-time high in March, marked by significant volatility and fluctuations between key resistance and support levels. As this correction nears its end, the next move could be crucial for the cryptocurrency's long-term outlook.
Bitcoin's corrective phase nears end
Bitcoin has been trading within a descending channel since March, indicating a potential downtrend. Despite brief rallies, it has struggled to maintain a sustained bullish pattern, suggesting the overall trend remains bearish. While recent interactions with ascending support have triggered temporary rebounds, the broader downtrend continues.
RSI reaches overbought levels
The Relative Strength Index (RSI) on the daily chart has reached overbought levels, signaling that a pullback may be imminent. Analysis of Bitcoin’s wave structure shows a potential new bullish phase beginning in August, but a downturn could occur as it nears ascending resistance.
If Bitcoin holds above the critical Fibonacci level of $56,750 and resumes its upward trend, it could signal a move toward a new all-time high. However, a break below this level may lead to further declines.
