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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $30,000 mark and has been going sideways for several weeks now. The price has been bouncing back and forth between the $31,500 and the $29,000 region for a while now. There seems to be no buying or selling pressure at the moment, and the trading volume is also low. As long as the price is trading within this zone, BTC will stay calm and will not make any big moves in the short term. Let’s take a quick look at the 1-month charts for Bitcoin to see how things are looking on the macro timeframe.
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Analyzing the Charts
If we take a look at the 1-month timeframe for Bitcoin, the first thing we can notice is that the price has been dropping consistently since April. The past two months have been bearish candles, and it would be interesting to see how this month pans out.
We can also notice that the price is sitting right on the bottom support zone that has been holding since the correction in May 2021.
Because this support zone has held in the past, there is a possibility that Bitcoin can bottom out here. If that happens, we will also have a double bottom pattern on the 1-month charts, which is a bullish sign.
However, as of now, there are equal chances of BTC breaking this support. If that happens, we would not be expecting BTC to stay below this level for long.
Also, if we look at the Fibonacci numbers from the previous market bottom for BTC, we can see that the price is holding the 0.618 nicely as it had in the past. Breaking below this region for good will take some serious effort from sellers.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin has been moving within a consolidation zone for several weeks now and could go either way in the short term. On the monthly, we can see BTC is at the bottom of a crucial support level and could bounce back in the coming weeks. However, we will only be interested in buying BTC with dollar-cost averaging here and will accumulate more if the price drops below the support zone.
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