What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $50,000 mark and is still looking bullish in the long run. BTC has been on a steady rise, and it is likely we will see a new all-time high in the coming months.
However, the next target for Bitcoin in the immediate short term is $51,500. It is a crucial level for the digital asset and can send its price either way.
Want to trade Bitcoin or Ethereum? Sign-up on Phemex today with our link and claim a bonus of up to $2,500 on your initial deposit. (Bonus may vary based on deposit amount)
Analyzing the Charts
If we take a look at the Bitcoin charts, we can see that the $51,500 level holds a lot of significance. This is the level we broke to reach the $60,000 mark, and it’s the same level we failed to hold last May and dropped to $29,000.
This 4-hour chart from May 2021 shows we put a double top at this level and saw a sell-off towards the $30,000 region.
We will have to wait and see how the price reacts to this level in the next few days as a strong rejection is expected. We could also be forming a potential head and shoulders pattern on the 1-hour timeframe, which could result in a price correction.
On the other hand, if we manage to break above this level, we will be aiming for $51,500.
However, the first scenario seems more likely as BTC is due a correction. We have seen plenty of bullish days, and a drop towards the $44,000-$45,000 will be healthy for the price in the long term.
Conclusion: Is Bitcoin Bullish?
Bitcoin is still looking extremely bullish in the long run as the fundamentals are still in its favor. However, for the immediate short term, we would not be accumulating BTC anymore and will wait for the price to react to the $51,500 region.
If we see a correction towards the $44,000 level, we will take advantage and buy more Bitcoin.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. This guide can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of best Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Copy Trading
Tired of the hassle that comes with technical analysis? If so, PrimeXBT Covesting allows you to mimic experienced traders. Sign up with our link today.