What is Bitcoin (BTC) Doing Right Now?
In our previous Bitcoin price analysis, we had a look at the 4-hr chart and discussed the descending channel within which BTC’s price is moving.
Bitcoin has now broken above a key resistance around the $33,900 mark and is looking quite bullish at the moment. As long as the price of Bitcoin keeps trading above this resistance level, we can expect to break out of the channel soon.
Once the price breaks out of this structure, we can see a nice move towards the high 30Ks or low 40Ks regions.
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Taking a Look at the Horizontal Levels
The price of Bitcoin might be moving within a descending channel, but we would not ignore our horizontal levels before entering any trade.
As we can see in this chart, the price of Bitcoin has broken above the key region of $33,900. The longer the price stays above this level, the quicker we will move towards higher levels.
However, even if Bitcoin manages to break below $33,900, it would not kill the bullish momentum. The next support is at the $33,400 region, and the price would still be moving within our descending channel if we get to this level.
We will also be expecting a nice bounce towards $35,000 once this scenario plays out.
The last time Bitcoin tested this level, it created a double top which resulted in a major sell-off. The price plummeted to low $30,000 regions as soon as we hit the level.
Our ideal scenario now would be that we break above the $35,000 region and close several 4-hr candles above it to challenge the next major resistance ($36,000). Once we get past the crucial resistance at $36,000, we would be taking a major step towards our bull run resumption.
The next targets from here will be the early $40,000 region. We will have to wait and see how the price plays out once we get there.
Conclusion: Where is Bitcoin Headed?
Bitcoin is still looking quite bullish on the shorter time frames as the price is trading above some key resistance levels we discussed previously. However, we will still wait for our confirmations before we open a long-position on Bitcoin.
Bitcoin could also deflect from here, and we could see a move towards the $32,000 region if the volumes don’t flow.
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