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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above $46,000 and is struggling to get back to higher levels. The price of Bitcoin fell 10% within an hour in a flash crash yesterday, and the crypto market is looking a bit unstable at the moment.
It is crucial for Bitcoin to break above the immediate resistance it is facing around the $47,000 region to gain some bullish momentum. If Bitcoin fails to do that in the next several hours, we can expect the price to fall to lower levels.
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Analyzing the Charts
If we take a look at the 1-hour timeframe, we can see that Bitcoin is bouncing back and forth between the $46,000 level and $47,400 level.
Bitcoin must break above $47,400 in the next few hours to shift the momentum. The longer we stay below it, the more chances we have to fall further.
On the other hand, if we do close an hourly candle below $46,000, the next level we must hold is the $44,000 region which is strong support.
On the other hand, if we do manage to break above the resistance at $47,400, we could see a nice spike in price, and the next resistance we will be facing would be at the $49,100 region.
However, it seems that the second scenario is unlikely as we are already breaking below our support at $46,000. If we do close an hourly candle below this level, we will be heading towards our downside target.
We are also forming a bear flag on the shorter timeframes, which is a clear indication that we might be headed towards the $44,000 level.
Conclusion: Is Bitcoin (BTC) Bearish?
Bitcoin is struggling to recover from yesterday’s flash crash and is looking bearish in the immediate short term. However, even if we fall down to lower levels, it would just be seen as a price correction, and we will still be headed towards higher targets in the long term.
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