What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading above the $46,000 region and is still looking bearish in the immediate short term. As mentioned in our previous analysis, Bitcoin is struggling to recover from yesterday’s flash crash and is trying to break above the resistance at $47,400.
Bitcoin also lost its support at $46,000 a few hours ago but managed to get above it again in no time. This might be an indication that the bulls are now stepping in to push the price higher.
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Analyzing the Charts
If we take a look at the 30-minutes chart, we can observe that Bitcoin is forming a lower high and is trading within a descending channel.
This structure indicates that the price might be moving towards a lower level in the immediate short term.
However, descending channels are generally considered bullish. If we manage to break above this structure, we can see a sudden spike in the price.
If we manage to break above the structure, our next target would be the $49,000 region. We are also likely to overcome the resistance at $47,400 easily.
On the other hand, if we do retest the bottom of the channel and fail to hold the $44,000 level, we might see another drop. We are likely to fall to $40,000 if this happens.
If this scenario plays out, we might get a bounce back from the $42,000 level only to get rejected at $44,000 on retest.
$40,000 could mark the end of this correction, and we would be interested in accumulating more BTC here.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Bitcoin is currently at a crucial price point and could go either way in the short term. As of now, we would not be trading any Bitcoin and will wait for it to move out of this descending channel.
Once we move above or below the channel, we will place trades according to the levels mentioned above.
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