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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below $57,000 and has been going sideways for the past few days. BTC showed some nice bullish momentum on the smaller timeframes yesterday but failed to break above $59,200. The price also retested the support at $55,700 a couple of hours ago and seems to be bouncing back now. Bitcoin must hold this support in the coming hours to stay bullish in the immediate short term.
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Analyzing the Charts
Bitcoin was forming an inverse head and shoulders pattern on the 1-hour timeframe, but it did not play out. In fact, instead of breaking out we saw a sell-off towards the $55,700 region and are now trading just above it.
It is crucial now for Bitcoin to hold the support at the $55,700 region. If the price breaks below this level, we would not be bullish on Bitcoin in the immediate short term. The next level we would like to BTC hold in that scenario is the $53,700 level.
The $53,700 level has acted as strong support in the past and we are likely to hold it in an event of a sell-off. It is the last level we would be watching for Bitcoin before we get bearish on it.
On the other hand, we are still watching the inverse head & shoulders pattern Bitcoin is forming on the 4-hour timeframe. The price is still forming the right shoulder of the pattern and we are hoping for the structure to stay intact in the coming hours.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently trading within a consolidation range and has not moved much in the past few days. The major resistance we want BTC to overcome is the region around $60,000. It is a major level of support and resistance and once we get above it we will be extremely bullish on Bitcoin. However, as long as BTC is trading below it, we would be making our moves with extreme caution.
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