What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading below the $30,000 region and is currently struggling to gain bullish momentum on the lower timeframes. There is extreme fear in the crypto market at the moment as both Bitcoin and altcoins are moving in a strong downtrend. It is important for Bitcoin to hold the $30,000 region on major timeframes as a relief rally is a good sign after such a strong sell-off. If BTC fails to show any signs of relief, there is a good chance that it will face another sell-off. Let’s take a quick look at the 1-week charts to see if there are any bullish scenarios possible for Bitcoin.
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Analyzing the Weekly Charts
If we take a quick look at the 1-week charts we can see that the price is trading around a major support level. The region below $30,000 has a lot of importance as the price has bounced strong from there multiple times in the past couple of years.
Also, if we take a look at the price action, we can see that the price is forming a falling wedge in the 1-week timeframe.
A falling wedge is a bullish pattern that forms during a downtrend. It means that the price is approaching the bottom and buyers will eventually take control.
However, we can expect BTC to visit the $27,000 zone as well. A relief rally towards $35,000 is on the cards and once BTC faces rejection it will touch $27,000 before the bulls take control.
If the structure plays out successfully Bitcoin could start moving in an uptrend and things will start looking green once again.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently trading around a major support zone and could drop lower for a short time in the coming weeks. Right now, we would not be placing any short-term trades on Bitcoin and will wait for the price to react to a major level. If Bitcoin bounces off this structure once again in the coming weeks, we would be interested in accumulating more Bitcoin.
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