Bitcoin is currently trading below $38,000 and has closed several consecutive red candles on the 4-hr timeframe. In our previous price analysis, we discussed that BTC is trying to reclaim the support at the $39,500 region and has failed to stay above it in the past 24 hours.
However, this move towards the downside is not the worst thing for BTC. We can also expect to see a bounce back from here as we have already retested the $37,400 region.
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Bullish Scenario for Bitcoin (BTC)
Bitcoin has just touched the $37,400 mark and it is likely that the price will bounce back from this region. Our next target from here on would once again be the $39,500 mark. We do not only need to get above this level, but we also need to retest it successfully.
Our bullish scenario will be that we successfully reclaim the support at $39,500 and move towards the $42,400 region for a third retest.
Breaking above $42,400 will be a very bullish sign for Bitcoin and we could also expect a new all-time high in coming months if that happens.
Bearish Scenario for Bitcoin (BTC)
On the other hand we cannot rule out a bearish scenario and must consider our downward targets. If we see a rejection for this bounce, we could fall further towards the strong support at the $36,400 region.
If that happens, the overall trend on Bitcoin will still be bullish even in the short-term. The $36K level is considered a strong support and bulls will try to hold this level.
However, if the price does drop below this region, it could trigger a sell-off and we would be headed towards $31,000.
Conclusion: Where is Bitcoin (BTC) Headed?
Bitcoin has been closing red candles on the 4-hour and 1-hour timeframes, but it is still looking quite bullish. We have just bounced back from the support at $37,400 and are likely to touch $40,000 once again. The target we are eyeing is the $42,300 region and are expecting to break above it.
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