What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $49,000 mark and is gaining some bullish momentum on the shorter timeframes. The price bounced nicely from the support at $47,500 and we are now headed to retest the resistance at $49,500. If we do break above this resistance, it will mean that the bulls have started to gain some control. Let’s take a look at the Bitcoin charts to see what we can expect in the short term.
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Analyzing the Charts
The main horizontal level we will be watching for Bitcoin right now is the support at $47,500. It is a level that has acted as strong resistance and support in the past and we must stay above it in the short term.
On the other hand, it is also vital to get above the resistance at $49,500 and BTC still does not have enough bullish momentum. If the price breaks this level in the coming hours, we would be bullish on Bitcoin in the short term and will expect it to retest $51,500 once again.
On the other hand, if we face rejection around the $49,500, we can expect Bitcoin to lose the support at $47,500 as well. In that scenario, we can expect Bitcoin to drop to $46,000.
If that happens, we would have also formed the left shoulder of the head & shoulders pattern we talked about in our previous analysis. That’s why it is likely we will see another sell-off if BTC faces rejection at $49,500.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is still in a critical spot, and we can expect it to go either way in the short term. If Bitcoin manages to break above $49,500 convincingly in the coming hours, we would be interested in placing a short-term long trade on it. On the other hand, if it faces rejection there, we will be interested in shorting it with a tight stop loss.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
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