What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $46,500 mark and is struggling to recover from the flash crash we experienced on Tuesday. As discussed in our previous price analysis, the first resistance BTC needs to break is the $47,400 level. We did have a symmetrical triangle breakout yesterday but saw a clear rejection at $47,400.
It is crucial that Bitcoin must break above $47,400 on the next attempt. Otherwise, we will be heading towards the lower levels.
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Analyzing the Charts
If we take a look at our charts, we can see that Bitcoin is currently holding the support at the $46,400 level. We did fall below this support a few hours ago but reclaimed it immediately and are now trading above it.
This support is a crucial level for Bitcoin because if we fall below it, we could see an extended sell-off towards the $45,000 region.
It also seems like we are about to retest the $47,400 level once again, and if we fail to break it this time, we are likely to lose our support at $46,400. The next level we will be watching in this scenario is the $45,000 region.
However, if we do manage to break above this resistance, we can see a solid spike in price and will be headed towards our breakout target of $49,200.
This scenario is looking more likely right now as Bitcoin is forming higher lows, and the price is being squeezed towards the resistance at $47,400.
Conclusion: Is Bitcoin (BTC) Looking Bullish In the Short Term?
Bitcoin is still trading within a danger zone and could go either way in the short term. However, most of the indicators show bullish signs as we are forming higher lows on lower timeframes and also have a bearish divergence.
We will wait for Bitcoin to break above the $47,400 mark, and only then will we be interested in putting any long trades on it.
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