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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading above $38,000 and is looking to retest the $40,000 target once again. As discussed in our previous price analysis, BTC must break above $38,800 to give us a confirmation of this retest.
Once we are above this level, we will also be interested in opening a long trade on Bitcoin for scalping.
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Analyzing the $40,000 target
If we take a look at the 4-hr and 1-day timeframe, we can see that $40,000 holds some real significance.
The last time when we challenged this level, it proved to be a bull trap, and we saw a major sell-off in the coming days.
We can see that Bitcoin traded among our resistance zone between $39,500 and $40,600 for a couple of days and eventually broke below it.
We can also see that we have put a double top on this level and could finally break above it this time. The resistance here is quite strong, and breaking above this level could also indicate the resumption of Bitcoin’s bull run.
On the other hand, if we fail to break above $40,000, we could fall back on our support at $36,500. If the trading volumes are low by then, Bitcoin might start moving towards $28,000 once again.
However, Bitcoin is currently bullish, and this scenario is unlikely to play out. We will just have to wait and see how the price behaves in the near future.
Conclusion
Bitcoin is trading above $38,000 and is looking quite bullish at the moment. Our next obvious target is the $40,000 mark, and we must break above it to continue our bull run. We will wait for Bitcoin to touch our confirmations and will trade accordingly.
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