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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $42,000 mark and has broken down from the previous support at $42,500. We did see BTC gain some bullish momentum this week, but it faced rejection around the $44,000 and is coming down to retest the lower levels once again. Let’s take a look at the latest 1-hour charts to see where the price is headed in the short term.
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Analyzing the Charts
If we take a look at the 1-hour charts for Bitcoin we can see that the price might have broken below a crucial horizontal level but it is still carrying the momentum. BTC is currently retesting significant trendline support that was previously acting as resistance.
We can see that this level was acting as strong resistance in the past and right now BTC seems to be bouncing back from it. This could turn out to be a liquidity grab for Bitcoin and we can see a major breakout in the coming days.
We can also see that the price is forming a falling wedge which usually breaks towards the upside.
If this structure plays out in the coming hours, we can expect BTC to retest the $44,000 region once again.
However, we are also approaching the weekend and the trading volume is likely to drop in the next couple of days. BTC could also go sideways or fall further lower by the end of the day so we would trade cautiously.
The level we will be watching for Bitcoin in that scenario is the strong support at $40,700.
Conclusion: The Final Verdict on Bitcoin (BTC)
Bitcoin is currently trading in an indecisive territory and could go either way in the short term. We are expecting BTC to maintain bullish momentum and get above the $42,500 level before the end of the day. However, the price could also drop because of the weekend and we would refrain from placing any short-term trades on Bitcoin currently.
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