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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below the $50,000 mark and is trying to break above it. As mentioned in our previous price analysis, BTC did manage to break the resistance around $49,500 and is now coming back to retest it as support. However, there is another resistance on the 1-day charts that we need to watch out for BTC right now.
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Analyzing the Charts
Bitcoin is facing minor resistance around the $50,300 level, but that is not the only area we are watching right now. If we switch to the 1-Day timeframe, we can see that Bitcoin is currently touching a trendline that has been holding the price down for the past several months.
The descending trendline in the above chart has been keeping the price low since April 2021. It is crucial for Bitcoin to break above this resistance, or we could see another price dump in the coming days.
Also, if we bring out the Fibonacci retracement tool, we can see that this trendline coincides with the 0.786 level.
The 0.786 level is an important indicator, and BTC must break above it to move towards our short-term target of $52,000. Once BTC manages to get above both these resistances, a rally towards a new all-time high would be on the cards in the coming weeks.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently looking bullish but is trading in a critical zone. The two resistance levels mentioned above are the areas we will be watching closely and trade BTC accordingly. Once we manage to break above the descending trendline, we would be interested in longing Bitcoin. Until then, we will wait and see how the price plays out in the short term.
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