What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $29,500 mark and is still going sideways on the lower timeframes. The price is currently moving within a consolidation zone and the trading volume has dropped significantly in the past couple of weeks. BTC was facing plenty of selling pressure in March which triggered a major downtrend and we saw several red weeks on the charts. Right now, the price is in a consolidation zone and there is barely any sort of pressure due to low volume. However, the downtrend could still continue, and the price can drop to the mid or low $20K region in the coming days. Below we will take a look at a possible bearish scenario for BTC in the short term.
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Analyzing the Charts
If we take a look at the 1-day timeframe for Bitcoin, the first thing we can notice is that the price is forming a symmetrical triangle.
A symmetrical triangle is a neutral pattern which means that the price can break out in either direction. That is why BTC seems to be in a critical territory where both bullish and bearish scenarios are possible.
However, if we zoom out on the 1-day timeframe, we can see also see this pattern as a bearish pennant.
As the name suggests, a bearish pennant indicates that the price will continue to fall in the short term. If this pattern does play out for BTC, we can expect the price to visit the lower $20K region.
On the other hand, we can also notice that the bears are exhausted at the moment. There seems to be no selling pressure and unless we see some bad news coming out for Bitcoin this scenario seems unlikely at the moment. A relief rally seems more likely here.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently moving within a consolidation zone and could either way. Even though there is virtually no selling pressure at the moment, the bears could step in once again and push the price lower. The above-mentioned bearish scenario seems unlikely but is not out of the equation. If we do see BTC break below the structure, we will be interested in shorting it.
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