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The Bitcoin price is playing out exactly as we predicted in our previous analysis Head and Shoulder Pattern Forming On Bitcoin! Sell Now?
Bitcoin has broken out of the head and shoulder pattern we talked about and crashed more than 8% in a matter of days.
However, one key level is holding Bitcoin back, and in this Bitcoin analysis, we will be talking about this key support as well as what we expect might happen soon.
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The $34,290 Support
The Bitcoin price is currently ranging at the $34,290 support. This price level has served as key support for the Bitcoin price on numerous occasions in the past.
If the current bearish trend is to continue, Bitcoin must break through the $34,290 support. This makes this region the best place to take profit if you traded off our bearish analysis Head and Shoulder Pattern Forming On Bitcoin! Sell Now?
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Bitcoin Might Flash Bullish
Bitcoin is currently ranging between the $34,290 support and the $39,808 resistance. As far as the price continues to trade in this range, we will remain neutral and wait for a price breakout.
- Bullish Breakout
A price break and close above the $39,808 resistance will create a Higher-High price structure for Bitcoin. This is very bullish for the Bitcoin price and points to more rally soon.
However, if Bitcoin cannot break through this key resistance, we can expect the cryptocurrency to continue to range and trade sideways or sell off in the coming days.
- Bearish Breakout
For the bearish Prediction, we want to see the Bitcoin price break and close below the $34,290 support region. We have seen the price consolidate and then reverse from this region a lot.
If Bitcoin is unable to break through it, we can expect to see price continue to range and trade sideways or even become bullish in the coming days.
Final Verdict!
Bitcoin is currently trading in a ranging market, with there being an equal potential for price to either break up or break down. If Bitcoin breaks above the $39,808 resistance, we can expect the price to rally higher.
However, if Bitcoin breaks below the $34,290 support, we will become bearish on Bitcoin and expect the price dump to continue.
Related Article: Complete Guide On How To Short Bitcoin
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