Bitcoin (BTC) is Trading Above $38,000
Bitcoin is currently trading above $38,000 and is showing excellent bullish momentum. As discussed in our previous price analysis, the next key level for Bitcoin is between $39,600 and $40,700. Once Bitcoin breaks above this resistance, we could expect the resumption of the market’s bull run.
Bitcoin will need to close several 4-hr candles between this region before breaking it. If it fails to hold this region, we could witness another sell-off towards the downside.
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Analyzing Shorter Timeframes
If we take a look at the shorter time frames, we can see that Bitcoin is not doing much for the past few hours.
On the hourly timeframe, we can see that the price has been moving sideways. It is neither breaking above $39,000 nor falling below $38,000.
We will wait for the price to move out of this region and then trade Bitcoin accordingly. The price can go either way from here. However, Bitcoin is looking bullish for the past few days, and we might as well be heading towards the $40,000 mark.
On the 30-minutes timeframe, we can see that Bitcoin is forming a symmetrical triangle. That means that the price is currently being squeezed, and we can see a breakout towards either side once we move out of the structure.
Once the price breaks above this structure, we can see a direct move towards the $40,000 region. With the momentum Bitcoin is carrying right now, this scenario is highly likely.
On the other hand, we could also break below this structure. The trading volume is still quite low, and a move towards the downside is not out of the picture. If we break below the triangle, our next support region will be $36,100.
Once the price moves out of this structure, we will also be able to see where the price is headed on the 4-hour and 1-day timeframe.
Conclusion: Is Bitcoin Bullish?
Bitcoin is carrying some excellent bullish momentum and is looking very healthy right now. We might finally break above $40,000 and claim new support there. Once we start trading above $40,000, we will get very close to resuming our bull run.
However, the volumes are still low, and a move towards the downside is still a possibility.
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