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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading below the $39,000 mark and is still looking a bit bearish in the immediate short term. As speculated in our previous analysis, the price did break below $39,200 and found some support at the $38,600 mark. Right now, we can see some green candles for BTC, but it is likely that the price will drop further and retest the $37,700 mark. The $37,700 level is a crucial support and Bitcoin needs to hold it through the weekend to gain some bullish momentum next week. Let’s take a quick look at the 1-week charts for Bitcoin to see where the price will go next.
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Analyzing the 1-Week Charts
If we take a look at the 1-week charts for Bitcoin we can see that the price is still trading within the channel we have been observing. BTC has been respecting this channel since the beginning of 2021. As long as the price is trading within this channel Bitcoin is unlikely to drop dramatically.
We can also notice that the price seems to be retesting the channel but is not at the bottom yet. That means it is likely that the price will touch the bottom and we will see Bitcoin drop to the $36,000 region in the coming weeks.
Bitcoin is also facing major resistance around the $46,000 to $47,000 zone and it is the main level it needs to conquer. Once the price gets above the $47,000 region, $50,000 Bitcoin is highly likely.
We can also see that this resistance zone aligns perfectly with 0.618 of the Fibonacci from swing low to swing high. The bulls will have to really step up to break above this level.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is still trading within a critical territory and could fall further in the coming week. However, the price is still trading within a safe channel and a bounce at the bottom is likely. It would be interesting to see how the price will react to the bottom of this channel and we would also see it as a nice opportunity to accumulate more BTC. Right now, we would not be placing any short-term trades on Bitcoin.
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