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What is Bitcoin (BTC) Doing Right Now?
Bitcoin has not moved much since our previous analysis and is still trading just below the $44,000 mark. As of now, BTC is still looking bullish on the lower timeframes, and we can expect it to break above $44,000 soon. The target we are eyeing is just below the $45,800 mark, which is the region that BTC must reclaim to confirm the reversal. Let’s take a look at the 4-hour timeframe to see where the price is headed in the coming days.
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Analyzing the Charts
If we take a look at the 4-hour charts we can see that Bitcoin is closing candles just below the $44,000 mark and is looking strong to get above it in the coming hours.
We can also see that BTC is forming a potential cup & handle pattern and the price might fall a little before making another move.
A cup & handle pattern is a bullish structure that forms right before a big breakout. If the price falls a little in the coming hours before moving back up again, we would likely be forming this pattern.
The breakout target for this bullish pattern would be around the $46,000 mark but we are likely to face some resistance around the $45,800 region.
The buying pressure is still not high and this structure could also fall part. It is vital that we see some volume flowing in for BTC for this pattern to play out.
Conclusion: The Final Verdict
Bitcoin is looking bullish at the moment on the lower timeframes, but we would still be trading it with caution. We need BTC to gain more momentum and get above some critical levels for us to turn bullish again. If the volume stops flowing we can see more sideways movement for Bitcoin followed by another move towards the downside. However, if we did see the above-mentioned pattern play out we would be interested in longing BTC in short term.
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