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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $40,000 mark and is showing some bullish signs on the lower timeframes. As mentioned in our previous analysis, the price is currently facing resistance around the $40,700 mark and seems to be holding around it well. The $40,700 mark is an important level as it has acted as both resistance and support in the past. Bitcoin has been moving within this zone for quite a while now and a big move in either direction is possible in the coming days. Let’s take a quick look at the latest Bitcoin charts on the 1-day timeframe to see where the price is headed next.
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Analyzing the 1-day Timeframe
If we take a look at the 1-day charts for Bitcoin the first thing we can notice is that Bitcoin is holding the support near $39,300 nicely. The price has been trading around this zone for almost two weeks now but has not closed a single candle below this level.
It is crucial for Bitcoin to hold this support in the coming days as breaking below it could trigger a strong sell-off.
We can also see that the resistance BTC is currently facing on the 1-day timeframe is around the $41,500 mark. It is the first level Bitcoin needs to flip to start gaining some good bullish momentum.
Another thing we can notice is that Bitcoin break below this major trendline support it has been respecting for months. The price dropped below it for a couple of days but seems to be trading above it at the moment.
It is not a good sign for Bitcoin and there is a good chance that the price will fall further. If BTC starts closing more daily candles below this line, we can expect a sell-off towards $37,000 or even lower.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently in a tricky territory and could drop further in the coming days. It is struggling to hold the important support levels for weeks and a sell-off could be around the corner. If the bulls fail to hold $38,000 in the coming days, the downtrend will strengthen. Right now, we would not be placing any trades on Bitcoin and will wait for it to make a major move.
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