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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $38,000 mark and is looking quite bullish in the immediate short term. The price has been struggling to gain bullish momentum for several days now as sellers have started to gain more control. However, we can also see that the price has gained some momentum in the past few hours and is now trading around a crucial resistance zone. In this price analysis, we will analyze the latest Bitcoin charts to see whether it will break above the crucial resistance or not. Let’s have a look:
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Analyzing the Charts
If we take a look at the 4-hour charts for BTC we can see that the price action has formed an ascending triangle and seems to be breaking out of it.
An ascending triangle is a bullish pattern that indicates an increase in buying pressure. When this structure is formed a big breakout can be expected for the asset. If this pattern does play out for Bitcoin we can expect it to retest the $41,200 mark in the coming days.
The $41,200 is the level that BTC was holding before this major drop and we can expect to face some resistance there.
On the other hand, we must also keep in mind that Bitcoin is in a strong downtrend, and it is also possible that the price would not play out this way in the coming days. In that scenario, if the price does break below the structure, we would be interested in placing a short trade on Bitcoin.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is currently looking bullish on the lower timeframes, but the trend still has not shifted. If the ascending triangle does play out in the coming hours, it would be interesting to see how much volume flows. Right now, we would not be placing any long trade on Bitcoin, and we will wait for a trend reversal confirmation.
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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