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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $37,000 mark and is looking quite bearish in the short term. The price has been moving within a downtrend for several weeks now and is struggling to gain any momentum. On the 4-hour charts, the price is struggling to break above the $38,400 region and has rejected it a couple of times. It is likely that BTC will continue its downtrend in the coming days, and we will be visiting the lower levels once again. Let’s take a look at the latest 4-hour charts to see where the price is headed next.
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Analyzing the Charts
If we take a look at the 4-hour charts, we can see that Bitcoin failed to form a higher high on this timeframe. We can also see that the price has rejected the resistance $38,400 region twice and has formed a double-top pattern.
The double-top pattern is a bearish pattern that forms when the price is rejected twice by the same resistance level. It indicates that the selling pressure is increasing, and the price could drop further.
If this pattern does play out, we would be heading back towards the local support of $34,200.
The last time price dropped to this region we saw a spike in trading volume. Bitcoin also managed to gain some bullish momentum in this region so it would be interesting to see how the price reacts to it.
Also, the $30,000 region is still in play and we are bearish on Bitcoin in the mid-term. However, we would first have to see how the price reacts to the $34,200 region.
Conclusion: Is Bitcoin (BTC) Looking Bearish?
Bitcoin is currently looking bearish, and we can expect it to go lower in the coming days. The price has been struggling to gain any sort of momentum and we can expect to visit the lower levels in the coming days. Bitcoin is also trading below crucial support on a weekly timeframe and a small bearish market could also be expected. That is why we would be making our trades with extreme caution.
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