What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below $47,000 and is looking quite bullish in the short term. BTC managed to break above the resistance zone around the $46,200 mark, which we mentioned in our previous price analysis. It is vital that Bitcoin flip this resistance into a support level in order to move towards higher targets.
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Analyzing the Charts
On the 1-hour chart, we can see that we are currently breaking above the resistance we mentioned in our previous price analysis. Bitcoin must close at least a couple of candles above this level to stay bullish in the short term. If we come back to retest this level and fail to hold it, we will be heading downwards once again.
We are also likely to face some resistance around the $46,800 mark, as we saw a massive rejection at this level quite recently.
On the other hand, if we reject this level once again, we will be heading back towards the $45,000 level. If that happens, BTC will turn bearish again in the short term, and we will again be looking at the $40,000 region.
We can also see that on the 4-hour chart, we are breaking out an ascending channel we have been respecting for a while now.
Bitcoin must close at least a couple of 4-hour candles above this level to confirm the breakout. If we fail to do that, it would be just a fake-out, and Bitcoin will be headed downwards once again.
On the other hand, if we convincingly break out of this channel, the next level we will be aiming for is the $48,600.
Conclusion: Is Bitcoin (BTC) Turning Bullish?
Bitcoin is currently looking bullish in the short term, but we would not be making any trades yet. BTC has shown extreme volatility and has been highly unpredictable for the past few days. It is best to wait for multiple confirmations before entering into any trade.
If Bitcoin does manage to close a couple of 4-hour candles above the channel, only then will we be interested in longing it.
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