In my Bitcoin analysis yesterday, I talked about the bearish price break we saw happen on Bitcoin. I also pointed out my doubts and my reasons for believing the move might be a fake-out and why we might not see a follow-through of the price heading lower.
Well today, the price has rebounded from that $8k region I initially pointed out and shot back up, forming a double bottom and turning very bullish. But for how long will this bullish move last and should you be worried about any coming resistance?
I will be answering these questions and more to the best of my ability in this Bitcoin analysis.
Bitcoin Short Term Bullish Bias and The Target Levels to Watch Out For
Bitcoin just formed a hidden divergence on the lower timeframe. This pattern is very bullish and supports the prediction that we might see the Bitcoin price move higher.
The target level to watch out for is the $10k region which also serves as the top channel of the ascending triangle we are currently trading in. I believe the price as a high probability of getting to that region as it has done over and over again on previous occasions.
Does This Mean the Bullish Trend as Fully Resumed?
The answer to this question is NO.
You must understand that Bitcoin is still trading in a range and is currently in an ascending triangle on the higher timeframe. A break out of this triangle to the upside can signify the resumption of the uptrend.
However, for me to assume the uptrend as fully resumed, I need to see a break of the $10,500 resistance region. This region has been holding the price back and might do so again in the future. So, until price breaks this region, I will stand aside, because there is still a very high probability that we might see a price reversal and a pullback.
For confirmation of a down-trending market, I need to see a break of the $8k region before I can start considering shorting Bitcoin. But until then, I remain neutral and wait for the price to break through these predefined regions to avoid getting trapped in a choppy market that is ranging sideways.
To gain more information and learn how to trade this cryptocurrency and become consistently profitable, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.