What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $40,000 mark and is struggling to gain momentum on the lower timeframes. The price has been trading within the $40K zone for the past few days as bulls are trying to hold this region during this sell-off. Right now, the support level we are watching for Bitcoin on the lower timeframes is the $39,600 mark. It seems likely that the price will break below it in the coming hours as it is not showing any signs of a bounce at the moment. Let’s take a look at the 1-week charts for Bitcoin to see where the price is headed in the coming weeks.
You can trade Bitcoin with leverage on Bybit. By using our link, you can get up to a $4,100 bonus. (Bonus may vary based on deposit amount)
Claim up to $30,030 in Bonus
Analyzing the Charts
On the weekly charts, we can see that the price faced strong rejection around the $47,000 region and has been closing bearish candles since then.
We can also see that the price is holding this crucial trendline support that it broke out of last month.
It is vital for Bitcoin to close the current weekly candle above this trendline support. If the candle closes below this level, we can expect a further sell-off.
On the other hand, we can also see that Bitcoin has just had a crucial crossover of the 50-MA and 20-MA.
Both these averages are quite crucial. When the 50-MA gets above the 20-MA historically we have mostly seen bearish days for Bitcoin. That is why we will be trading with caution and would not be placing any long trades at the moment.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently trading in a critical zone and could go either way in the coming days. We are already approaching the weekend so the price will likely drop further. If Bitcoin manages to break below the levels mentioned above, it will be heading towards a further correction. However, if the price bounces back during the weekend it would be a very good sign for BTC.
Margin Trading for Beginners
If you are interested in leverage trading Bitcoin, you can go through our Margin Trading Guide to learn more about it. You can also check our list of top crypto exchanges to choose the platform that best suits your needs.
PrimeXBT Covesting: Copy Trading
Sign up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies! Don’t forget to claim a bonus of up to $7000 by using the promo code “bitcoinsensus50” with our link.
Claim up to $7000 in Bonus