In our previous Bitcoin analysis, we discussed how BTC is bullish in the short term, and the price is playing out exactly how we predicted it.
Bitcoin is currently trading above the support level at the $34,500 mark and is moving towards our next target of $36,000.
However, it seems to be facing another resistance at the $35,000 region and could possibly reject it in the next few hours.
Where is Bitcoin (BTC) Headed Now?
The resistance BTC is facing around the $35,000 region is a strong one. We have broken above or touched the mark several times in the recent past. However, every time that has happened, we have dropped back to the trend line support.
The above analysis of the 4-hour chart shows every time we have challenged this resistance level. We have tested this resistance seven times, and only two times were we able to break above it.
The ovals in the chart show every time we failed to break above this region, and the arrows point towards the temporary price pumps that did not hold.
Our ideal scenario will be that we break above this level and retest it before moving towards the $36,000 target.
If Bitcoin breaks above $35,000 and retests the region before moving any higher, we could see a nice price pump. In that scenario, Bitcoin will likely break above the $36,000 resistance quite easily and would move towards the next level at the $39,000.
On the other hand, If we break through the $36,000 region without retesting the $35,000 mark, we could have a possible entry for a short-trade.
The price will likely drop below the price of the trend line, and we could see Bitcoin going back to the $31,000 region. A drop towards higher $20,000s regions is also possible in this scenario.
Conclusion: The Verdict on Bitcoin
Bitcoin is currently retesting a very important resistance at the $35,000 region. It is important that we let the price play out and do not enter any trades until we have some sort of price confirmation.
For the time being, the price of Bitcoin could go either way on the 4-hour and the hourly time frame.