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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $31,500 mark and is trying to gain some bullish momentum on the lower timeframes. As mentioned in our previous analysis, BTC bounced nicely from the $30,000 mark and retested the $32,600 mark as resistance in no time. The $32,600 mark is the important level we are watching in the immediate short-term. If the price breaks above this level a relief rally is likely for Bitcoin. Let’s take a look at the latest BTC charts to see what our possible relief rally scenario looks like.
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Analyzing the Charts
If we take a look at the latest charts for Bitcoin, we can see that the volume started to flow in after the price touched the $30,000 mark.
The $29,000 to $30,000 region has a lot of significance as we have seen the volume spike here previously as well. It also acted as a strong support zone during the major correction last year. That means BTC won’t break below this level easily and that makes a relief rally likelier.
So, if we do see a relief rally for Bitcoin, the area we would be eyeing here is the $35,000 mark. It is the region where Bitcoin found major support in January and we can expect sellers to step in again here in an event of a relief rally.
We can also notice that the $35,000 region coincides with the 0.5 of the Fibonacci from swing-high to swing-low.
That gives us more reasons to believe that the rally will take us to the $35,000 mark in the coming days.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin has been moving within a strong downtrend for the past few weeks and could still fall further in the near future. Right now, the price is trying to gain some bullish momentum on the lower timeframes, and a relief rally is on the cards. However, Bitcoin is still in a risky territory and has not stabilized yet. Right now, we would not be placing any short-term trades and will wait for BTC to break above a strong resistance or show a massive rejection.
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