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In our last Bitcoin price analysis, we discussed our short-term bearish targets and dissected the price on the daily timeframe.
Now we are going to take a look at the 4-hourly charts where we broke below a crucial support at $32,700 but have managed to reclaim it in no time.
As we can see on the chart, BTC is now trading above a strong support zone and is headed towards its next target of $33,700.
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The Bullish Scenario for Bitcoin (BTC)
After reclaiming the support at $32,700, Bitcoin is looking bullish again for the immediate short term. Now we are moving towards $33,700 and must break above it to gain the bullish momentum once again.
The resistance at $35,000 is also a critical level. Every time we have managed to touch or break above this region, we have fallen back very quickly.
However, we are likely to break above and hold this region because we have tested this area several times already.
As we can see in the chart above, we have reacted to this resistance zone several times.
The ovals represent every time we have rejected this area and fallen below immediately. And the arrows represent the two instances where we managed to break above it and fell again quickly.
To reclaim this region, we will have to re-test the support line and bounce back. That could be our confirmation sign for things getting bullish again.
The Bearish Scenario for Bitcoin (BTC)
Bitcoin might have broken above the resistance at $32,700, but that does not necessarily mean it is going to hold.
The trading volume is quite low at the moment, and we could very well fall below this support zone once again.
If Bitcoin breaks below and closes below the $32,700 line in the next 24 hours, we might be headed back to the $31,000 region.
This scenario is very likely to happen as we are walking into the weekend and trading volumes for BTC are already quite low.
Conclusion: Where is Bitcoin Headed Now?
Bitcoin is still showing some bullishness on the shorter timeframes, but is struggling with trading volume.
On the 4-hourly and daily timeframes, Bitcoin seems to be moving towards the downside once again. The $31,000 region is a critical one, and if the price bounces off here, it would be an excellent entry for a long-trade.
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