What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $51,000 level and is looking bearish in the immediate short term. As mentioned in our previous analysis, the $50,500 – $51,000 is an important level of support, and BTC must bounce off it to sustain its momentum.
We have also seen strong rejection from our resistance zone around $53,000, which indicates we might be having a bit of correction for Bitcoin.
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Analyzing the Charts
The important region we will be watching on all timeframes right now is the support zone between $50,500 and $51,000. Bitcoin must hold this region to stay bullish in the immediate short term.
This region can also be labeled as a strong support zone because it was a major resistance level in the past. Once we broke above this level, the strong resistance was flipped into strong support.
This 4-hour chart shows that our support zone has rejected the price several times in the past and saw a price spike once we got above it.
It is highly likely that we will bounce from this region and move towards our next target of $54,000.
On the other hand, if we do end up falling below this level, it would be a bearish sign for Bitcoin. The next immediate support we will be looking at would be at the $49,000 mark.
Conclusion: Where is Bitcoin (BTC) Headed in the Short term?
Bitcoin is currently trading at a critical price point and can go either way in the immediate short term. We will wait and let Bitcoin stabilize above $50,500 before we make any new trades. Once we are sure Bitcoin is bouncing back from the support zone between $50,500 – $51,000, only then will we be making short-term trades with Bitcoin.
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