What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $38,500 mark and is showing some bullish signs on the lower timeframes. The price did find strong support around $34,500 and we saw an aggressive buyback towards $39,400 a few hours ago. As speculated in our previous analysis, BTC is currently at a crucial resistance level and rejection here is likely. The global tension has weakened the fundamentals and further correction is still on the cards. Let’s take a look at the latest Bitcoin charts to identify the levels we need to watch in the immediate short term.
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Analyzing the Charts
After examining the 1-hour charts we can see that the momentum is currently on the bullish side for BTC. If the price manages to break above the strong resistance around $39,400, the next level we will be targeting for Bitcoin is the $41,700 mark.
Before BTC targets the $41,700 mark it is highly likely that it will retest the $36,500 region as support. That move will also end up forming a head & shoulders pattern on the 1-hour timeframe, which will strengthen BTC’s bullishness.
However, the fundamentals are still weak for Bitcoin and we could also end up facing strong rejection at $39,400. If that happens and we end up losing the support at $36,500, the next level we will be watching for BTC is the $34,500 mark.
We can also see on the 4-hour timeframe, that the price just touched the 200 moving average which is now acting as strong resistance. There is also a good chance that the moving average will keep the price low in the coming days.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Bitcoin is currently trading in a critical territory and can go either way in the short term. However, with the fundamentals being against BTC it is expected that the price will face rejection at $39,400 and will be heading towards the $33,000 mark. If we see Bitcoin struggle to break above this level, we will be interested in opening a short position 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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