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What is Bitcoin (BTC) Doing Right Now?
In our last Bitcoin price analysis, we discussed how the price was moving towards the $32,700 region and was likely to break below it.
The scenario is playing out exactly how we discussed it on the hourly time frame, and a move towards the downside is now looking imminent.
As we can see in the above chart, both support levels are now broken, and we are headed towards the $30,000.
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Taking a Look at the Daily Charts
In our earlier price analysis, we discussed Bitcoin’s price on the hourly timeframe. Now let’s take a look at the bigger picture to see where the price is headed in the short term.
On the daily time frame, we can currently identify two different structures. We can see a big falling wedge and also a small rising wedge within it.
A falling wedge is a bullish structure, and as we can see in the chart, the price is moving nicely within it.
On the other hand, we were forming this rising wedge within the same structure and have already broken below it today.
This rising wedge has played out nicely and is also the reason behind the break of important support at $32,700 on the shorter timeframes.
Now we are expecting to retest the bottom of our falling wedge, and that could prove an excellent entry for a long trade.
However, we also have strong support in the $31,000 region, and the price could bounce from there as well.
The bounce from $31,000 support is more likely as Bitcoin has never closed a daily candle below this region in a long time.
Conclusion: Where is Bitcoin Headed?
The falling wedge pattern on Bitcoin daily chart is playing out nicely at the moment. This is a confirmation that BTC’s price is still bullish in the long term.
However, we have also broken below our rising wedge and are trading below the support at $32,700 on shorter timeframes. This is a clear indication that Bitcoin is bearish in the short term.
Margin Trading for Beginners
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