What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just around $46,800 and is trying to flip the $46,700 level into support once again. BTC did make a significant move yesterday and fell on the major support at $45,800. However, the price seems to be bouncing off nicely and Bitcoin is trying to gain bullish momentum by flipping the $46,700 area. Let’s take a look at the 1-day charts to see what can be expected from Bitcoin in the coming days.
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Analyzing the Charts
If we take a look at the 1-day charts we can see that Bitcoin is still looking bullish on the bigger timeframes. The price is currently trading above crucial trendline support and is holding it nicely.
BTC has not fallen below this trendline since August of last year and is showing strength here once again. This area could also be the bottom for Bitcoin, and we can expect another rally in the coming weeks.
On the other hand, we can also spot the giant head & shoulders pattern that we have discussed in some of our previous analyses as well.
This massive bearish pattern is alarming and if it does play out, we can see a major drop in price for Bitcoin. The breakdown target for this pattern would be around the $20,000 to $22,000 mark which seems quite unbelievable.
However, this scenario is highly unlikely to play out as the fundamentals are in favor of the cryptocurrency market. This head & shoulders pattern could turn out to be a bear trap and once the price drops below this trendline buyers are likely to step in.
Once that happens, we will be headed back to the previous all-time high once again. In that scenario, $100,000 will be possible once again.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Despite the setbacks, we are still bullish on Bitcoin in the long term and are expecting it to form a new all-time high in the coming weeks. At the moment, we would still be trading it cautiously and would not be placing any short-term trades. However, we are also not hesitant in accumulating more BTC at this price for the long term.
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