Bitcoin on a rampage!
Ignited by Elon Musk’s tweet, the price of the biggest cryptocurrency in the world surged more than 30% in a matter of hours, breaking through the $34,588 and $37,553 resistance regions we talked about as the price targets in our previous Bitcoin analyses Bitcoin Tests Support Again Forms Double Bottom. Buy Now?
This bullish momentum in Bitcoin came to an abrupt stop at the $37,553 price level where the Bitcoin price ran into a wall of resistance and subsequently crashed more than 13% back down below $34,588 previous resistance now turned key support.
If this $34,588 key level holds, we can expect to see Bitcoin grow weaker and sell-off back down to the $29,520 support region in the coming days.
That is a potential 14% drop in the Bitcoin price.
For this bearish scenario to hold, the Bitcoin price must continue to trade below the $34,588 key level. A price break and close above this level could see Bitcoin becoming very bullish for the short term.
The most likly price target for a bullish surge would be the $37,553 price region. This region has served as resistance on numerous occasions and might do so again
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What Should You Do Now?
The best line of action to take right now as a Bitcoin trader is to wait for either a bearish or bullish trend confirmation.
For the bearish confirmation, we need to see the Bitcoin price break and close below the $32,879 resistance region.
This price break and close would be the confirmation we need to have a bearish bias for the Bitcoin market for the short term.
However, for the bullish setup, we need to see buyers’ breakthrough and hold the $34,588 key level. This would signal the presence of bullish strength in the Bitcoin price for the short term.
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We also created a video below where we talked more in-depth about the patterns developing on the Bitcoin chat as well as key fundamental factors that might affect the Bitcoin price in the coming days.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read our How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With