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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $36,000 mark and is looking quite bearish in the immediate short term. As mentioned in our previous analysis, BTC faced a major rejection around the $40,000 mark and fell below $36,000 in no time. The crucial support level we have been watching for Bitcoin for the past few days is the $37,600 mark. If BTC can reclaim this horizontal level in the coming hours and flip it into support, it would be a positive sign for Bitcoin. Let’s take a look at the latest Bitcoin charts to see where the price needs to close by the end of the day.
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Analyzing the Charts
If we take a look at the latest 1-day charts for Bitcoin, we can see that the price was moving within a falling wedge pattern and has now broken below it.
A falling wedge is a usually bullish pattern that forms before a big breakout. We can see that the price is now trading below this falling wedge which makes the structure invalid.
However, there is still a possibility that this break of support is a fake-out. If the BTC manages to cross today’s candle within the structure, the falling wedge will become valid again.
If that happens and Bitcoin manages to get through the weekend within this structure a big breakout will be on the cards.
On the other hand, if it is not a bear trap there are good chances that the price will fall further. The next support we will be watching for Bitcoin in that scenario is around the $32,400 region.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently in the critical territory and will likely drop further in the coming days. We are entering the weekend with bearish momentum which is never a good sign for the bulls. There is a possibility that this is just a fake-out to trap bears. However, we would still be treading lightly with Bitcoin and would not be placing any short-term trades at the moment. Once the price retests the $37,600 mark only then we will be interested in placing a new trade.
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