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What is Bitcoin (BTC) Doing Right Now?
Bitcoin has broken below the ascending channel it was forming on the 1-hour charts and is looking bearish in the immediate short-term. Right now, BTC is trading just around $48,000 and is trying to break above a crucial resistance level at $48,300.
It is likely that we will fail to break above $48,300 convincingly, and Bitcoin will see an extended sell-off towards the downside.
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Analyzing the Charts
If we take a look at the 4-hour charts, we can see that Bitcoin is trying to retest the resistance at $48,300 and must break above it to maintain the bullish momentum.
However, it is possible that if we close another 4-hour candle below this level, we could see an extended sell-off towards the downside. If that happens, we will be looking at the $46,700 level and the $44,000 level.
On the other hand, we can also observe that the price is still moving within the ascending channel BTC is forming on the 4-hour timeframe.
If we do bounce back again from the bottom of the channel, we would consider this sell-off a bear trap. The next target for us would be $50,000 if we manage to break above $48,300 on the 4-hour charts.
Conclusion: Where is Bitcoin (BTC) Headed?
Bitcoin is currently in uncharted territory and can go either way. Even though Bitcoin is due a healthy correction, we could still break above $50,000 in the next few days and can continue towards the upside.
Right now, we will observe how the price reacts to the bottom of the rising channel on the 4-hour timeframe and will trade accordingly.
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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