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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently breaking down and has fallen below an important support level of $31,000. The price is now rapidly moving towards the $30,000 region and might drop even lower.
In our previous Bitcoin price analysis, we mentioned how Bitcoin was struggling with low volume. This low volume has triggered a sell-off, and Bitcoin is now dropping rapidly.
The next important support we need to watch is the $28,900 region. Once we fall to this support, a spike in buying volumes is expected.
We can see on the 1-hr chart that the price has fallen below the support at $31,000 and has closed multiple candles below it. This is a bearish sign, and BTC is highly likely to drop to $28,900.
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What Levels do We Need to Watch?
If we take a look at the 4-hr timeframe, the first level we need to watch is the $31,000 region. The price may have already dropped below this region, but we will need to close multiple candles for confirmation.
Previous data shows that Bitcoin has not closed multiple candles below this region. We can only observe a wick and a one candle close below this region.
If Bitcoin manages to get above the $31,000 region in the next few hours, we might see a nice move towards the upside. However, it is looking highly unlikely because the trading volumes are still low.
The other level we need to watch is the $28,900 region, as it has acted as daily support in the past.
We can see on this daily chart that this zone has held up in the past, and we could see a bounce back from here.
We can also see that the falling channel we discussed in our previous price analysis is barely holding. The price did move below this channel, but we have not closed any candles below it.
We will have to wait and see what happens in the next few hours to get a better idea of where Bitcoin is headed.
Conclusion: The Final Verdict
Bitcoin is currently breaking down and is likely to drop to the $28,900 region. The momentum is bearish, and we might not see a bounce back anytime soon. We will have to wait and see how Bitcoin closes in the next few hours, and we will have a clearer picture of where the price is headed.
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