In our last price discussion, we discussed Bitcoin’s bearish momentum and where it is headed on the hourly time frame. The crypto leader has been consolidating for a while now, and the price can go either way from here.
In this price analysis, we will take a look at both the bearish and bullish scenarios for Bitcoin in the short term.
As we can see in the above 4-hr chart, Bitcoin’s price is moving sideways for a while now. It is bouncing back and forth between the support at $32,600 and the resistance at $35,5000. It is only a matter of time Bitcoin breaks out of this structure and makes a big move towards either side.
If you are looking to trade Bitcoin with leverage, you can sign-up on ByBit today and can trade with a leverage of up to 100x. You can also use this link to claim a bonus on your first deposit.
Claim up to $30,030 in Bonus
Bullish Scenario for Bitcoin (BTC)
Bitcoin is touching the support zone at the $32,600 region on the 4-hr time frame. We will need to bounce off this region once again if we are to see some bullish momentum for Bitcoin.
Bitcoin has been moving sideways for a while now. We can expect it to break the resistance at $35,000 soon. Once we break above this target, the next region we will be observing is the $38,000 mark.
It is very important that we re-test the $35,000 level once we have broken above it. We have managed to break above this level twice in the past. Both time we failed to sustain the level and the price dropped rapidly.
The re-test would be a confirmation that Bitcoin is bullish once again and is headed higher.
We can also find a descending channel on the same time frame, which is another bullish indicator for bitcoin. However, the volumes must hold for Bitcoin if we were to break above this channel. Also, a drop to the $31,500 region is still likely, according to this channel.
Bearish Scenario for Bitcoin (BTC)
For Bitcoin to drop further, we will have to break below the support at $32,600 region and close several candles below it. We can see on the chart that we previously broke below this channel but were quick to get back above again.
If we manage to close below it, we can see the price fall to the $31,000 region once again.
The price could also bounce back quickly from the $31,000 region and could be a good entry point for a long trade.
Conclusion: Where is Bitcoin Headed?
Bitcoin can go either way at this point, so we must wait and let the price play out. Once we have a few confirmations, we can only then consider entering into a trade with Bitcoin in the near future.
Copy Trading for Beginners
If you are interested in trading crypto but do not want to go through the hassle of technical analysis, you can consider signing up on PrimeXBT today. With the help of PrimeXBT Covesting, you can mimic trades made by your favorite experienced traders and can rely on their expertise to trade on a daily basis.