What is Bitcoin Doing Right Now?
As suspected in our last technical analysis, the shorter time frames for Bitcoin have now turned bullish. BTC is currently trading back above the support zone at $33,700 after falling below it for a few hours.
As you can see on the above chart, Bitcoin has not only managed to reclaim the support at $33,700, but it has also broken above the next minor resistance at the $34,500 mark. Our next target from here is major resistance at the $36,000 mark, which we have rejected several times in the recent past.
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The Momentum Is Bullish for Bitcoin (BTC)
As we can see, Bitcoin has already broken the resistance level at the $34,500 mark and is rallying up towards the new target of $36,000. We can now expect a confirmation of $34,500 turning into new support before the price moves up any higher.
The level around $36,000 is an important one because we have broken above it several times recently and broken below again due to lack of momentum.
However, the chart below gives us an indication that we might finally break above this level and move towards the $38K and $40K price mark.
Bitcoin has been respecting this trend line for a while now and is consistently creating new higher-lows. These trends indicate that we now might finally be able to hold above the $36,000 mark this time and move higher.
We can see something similar on the 4-hour chart as Bitcoin is creating new higher-lows here as well and is moving in a bullish trend.
We can also see that Bitcoin has broken above the trend line it fell from a few hours ago, and that is also a bullish indicator for BTC’s price.
Conclusion: Where is Bitcoin Headed?
Bitcoin (BTC) is looking quite bullish on shorter time frames at the moment, and day traders can use that to their advantage. However, despite forming all the right patterns, Bitcoin will still have to overcome the volume challenge to meet these targets.
As long as the volume is low, Bitcoin is still bearish in the long run, and another price drop below $30,000 is not out of the question. But for the short-term, the price is looking quite bullish.
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