What is Bitcoin (BTC) Doing Right Now?
In our last Bitcoin price analysis, we discussed the falling wedge pattern being formed on the 4-hr chart. The price is still moving within that pattern, and we are headed downwards towards the $31,000 region.
Now we will take a look at some key horizontal levels and what they are telling us about the price action.
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Analyzing The Horizontal Levels
Bitcoin is currently facing resistance around the $32,700 region. It is a crucial level, and we are already retesting it at the moment.
We have to get above this level and close a few candles above to turn bullish again. Once we break above this level and retest it successfully, we could be moving directly towards the next resistance at the $35,000 mark.
However, if we manage to close multiple candles below this zone, we might be headed towards the $31,000 region.
If this happens, we will be interested in accumulating more BTC. The $31,000 region is a strong support level, and we can also bounce back sharply.
Based on previous data, whenever we failed to break above the $32,700 region, we have seen a big sell-off towards the $31,000 level. There is a good chance that it might happen once again.
We can also see that Bitcoin is respecting this trend line on the 4hr-charts. BTC is creating a series of lower highs, as the price is being kept low by this trend line. We could also face rejection in this region and can break below $32,700 once again.
The Final Verdict
As we can see, Bitcoin is currently trading around the $32,700 region. If it manages to close multiple candles below this zone, we will be heading towards the $31,000 region. However, if those candles close above $32,700, we will try to break above the $35,000 target once again.
We can now sit back for some hours and wait for our confirmations. Once we have a confirmation, only then will we be interested in trading Bitcoin.
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