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What is Bitcoin (BTC) Doing Right Now?
Bitcoin has broken below the support at $47,400 and is currently trading below this level. As predicted in yesterday’s price analysis, BTC managed to break below $47,400 and is now bouncing back from the support at $46,800.
Right now, Bitcoin is at a very crucial point, and the next couple of days will tell us whether we are already at the bottom or a deeper correction is inevitable.
We can see BTC saw a massive rejection at the $48,600 level and fell to our major support at $46,800.
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Identifying the Important Levels for Bitcoin (BTC)
The first level we would be watching for Bitcoin right now is the $47,400 mark. This level was previously acting as our support, and now we will be observing it as our resistance zone.
If we manage to break above $47,400 and close consecutive 1-hour candles above it, we will gain bullish momentum once again. We are also likely to break above the $48,600 level in this scenario and would be targeting $49,700 next.
On the other hand, if Bitcoin fails to break above the $47,400 mark, we will be heading towards $46,800 once again and will most likely fail to hold it this time.
If that happens, the next level we would be eyeing is the $45,400 region, which is not strong support and BTC will struggle to hold.
If we see BTC making this move, our head & shoulders pattern on the 4-hour chart will also come into play. The breakdown from this pattern could also send the price towards the $40,000 region.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Bitcoin is currently in uncharted territory and could go either way in the short term. The two important levels we mentioned above will decide where the price is headed.
If we manage to break above $47,400, we will be interested in putting a long trade on Bitcoin. However, if we move towards the other side and break below $46,800, we will be shorting BTC.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. This guide can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of best Bitcoin Exchanges To Trade With.
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