What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $29,500 mark and has been consolidating since the second week of May. As mentioned in our previous analysis, the price is bouncing back and forth between the resistance at $30,800 and the support at $28,600. Once the price breaks out of this zone only then we can expect the volume to flow. Let’s take a quick look at the recent charts for Bitcoin and identify levels that can possibly come into play in the short term.
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Analyzing the Charts
If we use the Fibonacci retracement tool on the 4-hour charts from swing-high to swing-low, we can see that the .618 level is acting as strong resistance at the moment.
It can be clearly seen that the price drops rapidly whenever the 0.618 level is challenged. That means that the bulls are not pushing at the moment and there is not enough buying pressure in this zone at the moment.
On the other hand, we can also notice that the 0.382 level of the Fibonacci is holding nicely as support.
If the price breaks below the 0.382 level we can expect a big move towards the downside. In that case, a further correction would be expected towards the bottom level of the Fibonacci.
In the bullish scenario, the price will have to break above the resistance at 0.618 and 0.786 to start a relief rally.
Conclusion: What is Next for Bitcoin (BTC)
Bitcoin is still in a consolidation phase and might not move out of it for another couple of days. The trading volume is quite low at the moment and no external factor is driving the price in the immediate short term. If we do see some latest news for Bitcoin, related to regulations or adoption, we can then expect the price to make a big move. Otherwise, the price is being squeezed and it will eventually make a move in the coming days.
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