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In our last Bitcoin technical analysis, we discussed how the price was looking bullish on the shorter time-frames. Right now, BTC is still struggling with trading volumes which is why we are experiencing a slight pullback towards the downside.
Currently, Bitcoin is holding support at $33,700 and is pushing again to break above its previous support of $34,500. Let’s take a look at how BTC’s price is going to behave in the next few hours.
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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently lurking above the $33,700 and is re-testing the resistance at the $34,500 region, which was its previous support.
This is only a minor pullback, and the bullish scenario we discussed in the last analysis is still in play. The only challenge is the volume resistance, as there is not much BTC being traded right now.
We can also see that the price of Bitcoin is now moving inside a symmetrical triangle on the hourly time frame, which can break either way.
The price is now being squeezed, and the first resistance we are facing at $34,500 is likely to turn into our mid-triangle support (if we manage to break above).
The two scenarios that can play out from this structure are as follows:
The first scenario that could play out is a bullish one and can push the price above the upper resistance of $36,000.
For this scenario to play out, the price will have to bounce from the bottom of the triangle and re-test the mid-support at $32,400.
After this re-test, the price is likely to break out of the triangle structure and rise above the resistance at $36,000.
If the volume flow increases, the triangle breakout could push the price as high as the $39,000 mark.
If Bitcoin fails to break above the $34,500 resistance, we will likely see a move towards the downside. In such scenario we will see the price breaking below the triangle.
For this scenario to play out, BTC would have to show another rejection at the $34,500 price mark.
It will also most-likely result in the break of support at $33,300, which was holding just fine up till now.
The price will take a breather around the $32,700 region, and there is a decent probability that this action will trigger a sell-off. If that happens, Bitcoin can go all the way down to the $30,000 mark again.
Conclusion: Where is Bitcoin Headed?
In the short term, we should let the price of BTC play out for a few more hours before entering into any sort of trade.
We have the entry points for both bullish and bearish scenarios already highlighted on our charts. As soon as we see any confirmation, a trade could be in play.
However, for now, the price of Bitcoin could go either way.
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