Bitcoin (BTC) Price Analysis – Breakout or Fakeout?

6:46 am, Thu, 23 September 21

Current Bitcoin Data

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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.

Bitcoin (BTC) Price Analysis 2021 September 23

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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.

Bitcoin Price Analysis 2021 September 23

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.

BTC Price Analysis 2021 September 23

The second scenario seems more likely at the moment as Bitcoin is also forming an ascending wedge on the 1-hour timeframe.

Bitcoin (BTC) Price Analysis 2021 September 23

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.

Bitcoin Price Analysis 2021 September 23

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