Bitcoin short-term technical analysis. BTC is expected to re-test $4185 level. The charts look good in my opinion and I remain bullish.
BTC/USD Short-Term Chart Analysis
- Support: $3914, $3840, $3676, $3557
- Resistance: $4185, $4041
- Current Price at the moment of writing this article on CoinGecko: 3970$
Bitcoin is becoming less volatile which indicates an upcoming strong move. My guess is it will go up. I strongly feel that BTC has to re-test the $4185 resistance level and stay above $4000.
On the daily chart, the RSI indicator is near the overbought area. It does not concern me because it found support around $4950 and it seems to be in a consolidation stage between $4950-$4010 levels. If it does not fall from the consolidation area, it should make a bull rectangular pattern pretty soon and break the $4041 level. If it breaks bearish, it should find decent support at the 3840$ area and try to consolidate there for 2-3 days, followed by another attempt to break through the resistance levels and test $4185. This would validate the ABCD pattern.
BTC seems to be making a bullish shooting star on the daily chart and it stays above the 20 EMA. These are both bull signs.
If the above scenarios fail and BTC goes below $3840 we should see $3676, or lower. It will indicate that we are still in a bear market.
Overall, I think we are in the right direction and the market will continue to make new highs during the upcoming months. I can say that I am bullish, both short and long term.
Please, keep in mind that this is not financial advice, it is just me sharing my opinion. I am not a financial advisor. Always make sure to do your own due diligence before investing.
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