What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading above the $39,000 mark and is showing significant bullish momentum on the lower timeframes. The price is currently retesting the resistance at the $39,400 mark and must break above it to sustain this bullishness. If BTC starts closing 4-hour candles above this level, we can expect it to retest the $41,700 mark next. There has been a lot of uncertainty for BTC on the lower timeframes and the price has been making crazy moves in both directions. Let’s take a quick look at the 1-week to see how BTC will fare in the coming weeks.
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Analyzing the Charts
In our last 1-week timeframe analysis, we talked about the bearish pin bar indicator and how it could push the price lower in the coming weeks. The price played out exactly how we speculated, and the pin bar was followed by a big red candle.
If we take a look at the big picture once again, we can see that the price is still forming higher highs and higher lows on the 1-week timeframe. The price is still moving within the channel it has been respecting since the beginning of last year and must hold this structure.
We can now see that Bitcoin is at a very critical stage and if it breaks below this channel, things will get quite bad for it.
It is crucial that Bitcoin must not close any 1-week candles below this area, or we would be entering into a clear bear market.
On the bright side, we also have a potential double-bottom forming on the 1-day timeframe which could mean that the price will be headed upwards in the coming days.
Conclusion: What is Next for BTC?
Bitcoin is still in a critical spot, and we can expect it to fall further in the coming days. The Russia-Ukraine conflict has affected the financial markets badly and has also accelerated BTC’s bearish run. Right now, we would not be placing any long trades on Bitcoin and will wait for things to stabilize.
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