What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below $48,000 and has shown some bullish momentum in the past few hours. As discussed in our previous price analysis, Bitcoin must close a 4-hr candle above $48,300 in order to become bullish in the short term.
Currently, Bitcoin is at the bottom of the channel it is respecting on the 4-hour timeframe and could break below it in the next few hours.
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Analyzing the Charts
If we take a look at the charts, we can observe that Bitcoin is forming a falling wedge on the 1-hour timeframe.
A falling wedge is usually a bullish pattern, but there is a good chance it might not play out. Bitcoin is already at the bottom of the rising channel and is also trading below a crucial price point.
However, if we do manage to break out of this channel and above the $48,300 level, we would be eyeing the $50,000 mark once again.
On the other hand, if we fail to shift the momentum and the trading volume keeps dropping, we could drop below this wedge in the coming hours. If that happens, the support level we would be eyeing is the $44,000 region.
We must also keep in mind that Bitcoin has had a great run in the past few weeks and a healthy correction is on the cards. A drop towards the $44,000 region is very much likely.
Conclusion: Where is Bitcoin (BTC) Headed?
We are still bullish on Bitcoin in the long term, but if you are looking to trade it short term, it is better to let the price play out first. Bitcoin is at the bottom of the ascending channel it has been respecting on the 4-hour timeframe and could break below it any time. Once we break below our falling wedge on the 1-hour timeframe, we would be interested in opening a short on BTC.
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