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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below the $44,000 mark and is looking quite bullish in the immediate short term. We have seen a healthy spike in BTC’s price recently, which indicates that the bulls are now stepping in.
However, this spike in price could also be a fakeout, and our lower targets for Bitcoin are still valid.
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Analyzing the Charts
The first level we will be watching for Bitcoin is the $44,200 mark. This area has acted as strong support in the past, and we won’t be bullish on BTC unless we break this level.
To break above this level convincingly, Bitcoin will need to close several one-hour candles above $44,200. If this scenario does play out, our next target for Bitcoin will be the $47,200 mark.
On the other hand, if we face strong rejection around the $44,200, we could see another sell-off towards the downside. In this scenario, the level we will be watching for Bitcoin is the $41,900 mark and the $40,200 mark.
The second scenario seems more likely at the moment as Bitcoin is also forming an ascending wedge on the 1-hour timeframe.
An ascending wedge is a bearish pattern, and we can see a sell-off once the price breaks below the structure.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Bitcoin is currently showing some nice bullish momentum, but that does not mean we won’t see another sell-off. It is crucial for BTC to break the $44,200 level as flipping it into support will turn the price bullish.
As long as BTC is below this crucial level, we will trade with extreme caution. If we face a strong rejection at $44,200, we would also be interested in shorting Bitcoin with a tight stop loss.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
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