What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $20,000 mark and has not moved much in the past 24 hours. The price is struggling to gain momentum on the lower timeframes and has been going sideways. As mentioned in our previous analysis, Bitcoin is forming a symmetrical triangle on the 4-hour timeframe and could break in either direction in the short term. In this price analysis, we will take a quick look at the 1-day charts to see where the price could move in the coming week.
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Analyzing the 1-Day Timeframe
If we take a look at the 1-day timeframe, we can see that the resistance Bitcoin is currently facing is around $21,800. The same level has also been keeping the price low on the shorter timeframes. The support Bitcoin is currently respecting is around the $19,000 region.
We can also notice that there is a double bottom forming here that could play out in the next couple of weeks.
A double bottom is a bullish scenario which indicates that the price has found solid support, and the bulls are gaining some momentum. If this pattern does play out nicely, the breakout target for it would be around the $24,600 mark.
However, Bitcoin will have to break above $21,800 for this pattern to play out. The scenario seems unlikely because the trading volume is low, and there is not enough buying pressure in the market.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is in a crucial situation and could go either way in the coming days. The price has been dropping consistently for the past couple of months, and we can expect some sort of relief rally soon. It is likely that Bitcoin will drop below the previous bottom at around $17,500, but we might see a move towards the upside before that. Right now, we will not be placing any trades on BTC and will wait for the price to make a significant move.
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