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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below the $48,000 mark and is still looking bullish in the short term. As discussed in our previous analysis, Bitcoin is facing resistance around the $48,500 and is struggling to break above it. If BTC rejects this level once again, we could see another sell-off towards the downside.
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Analyzing the Daily Timeframe
If we look at the daily timeframe, we can see a repeat of a pattern that we saw not a long time ago. We are currently in the process of forming a lower high on the 1-day timeframe, and it would be interesting to see how it pans out.
We can see that Bitcoin is forming a higher low after going through a series of higher highs. This pattern is quite similar to the one we saw in the first quarter of this year.
We can also observe that once we formed the higher low successfully, we saw a huge sell-off towards the downside.
However, just because we are repeating this pattern does not necessarily mean we will be heading lower. Bitcoin still has not broken its current structure and is resting nicely on the Fibonacci retracement levels.
We can see that not only are we sitting above the golden pocket of the Fibonacci retracement, but we are also bouncing from it nicely. If we come to retest this area and fail to hold it, then there is a high chance we will see a major sell-off.
Conclusion: Where is Bitcoin (BTC) Headed?
We are still extremely bullish on Bitcoin in the long term and are expecting it to break a new all-time high by the end of the year. It is highly likely that we will see several drops before getting to the all-time high due to the volatile nature of Bitcoin. However, for a long-term hold, we would not hesitate to buy more BTC at this point.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
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