What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $41,500 mark and is looking a little bearish in the short term. The price is currently trading above the support at $40,800 and could also drop below it in the coming hours. BTC did show some strong bullish signs at the beginning of this week but has been going sideways since then. It is currently facing strong resistance just below the $45,000 mark and things have been quiet for the past few days. Let’s take a look at the latest 1-day Bitcoin charts to see how things could turn out in the coming days.
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Analyzing the Charts
If we take a look at the 1-day charts for Bitcoin we can see that it is facing strong resistance around the $45,500 region.
We can see that this zone has been keeping the price low for several weeks now and it was also acting as a major support in the month of January.
Another thing we can notice for BTC is that the current zone it is trading around is also quite crucial. The $40,000 to $42,000 region has acted as strong support and resistance in the past. Things are generally bullish for BTC as long as it is trading above this zone.
We are still bullish on Bitcoin as long as the price is trading above this region. We can also see the double-bottom pattern for BTC which has also been pointed out in our previous analysis.
A double-bottom pattern is a bullish pattern that forms before a big breakout. However, if this pattern does not play out in the next few days, things could change quickly as the price ends up forming a double-top instead.
A double-top is a bearish pattern and could mean that the downtrend will continue in the coming days.
Conclusion: The Final Verdict on Bitcoin (BTC)
Bitcoin is currently in a crucial zone and could go either way in the coming days. It would be interesting to see whether the price will hold the support zone mentioned above or will it continue to fall. If BTC ends up breaking below this zone and starts closing 1-day candles, we will likely see the downtrend continue.
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