What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $53,700 mark and is looking quite bearish at the moment. In our previous price analysis, we did talk about the possibility of price touching the $53,700 level as we were retesting the $55,700 mark for the third time. Right now, we would be watching this support closely and if Bitcoin manages to hold it in the coming days, we can expect a shift in trend.
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Analyzing the Charts
On the 4-hour charts, we can see that the price has found support around the $53,700 mark (a level that has acted as strong support in the past). It is crucial that BTC hold this level in the coming hours as breaking below it could trigger another sell-off.
Also, if we switch to the 1-day timeframe we can see that Bitcoin has just retested the 100-days simple moving average and is likely to bounce from it.
If Bitcoin successfully manages to hold this support for the coming days, the buying pressure will increase, and this could turn out to be the local bottom. The current sell-off might just be a bear trap and a relief rally might follow it.
However, if we retest the $55,700 mark and face rejection we will likely go down further. The support level we will be watching in that scenario is the $52,000 mark that has acted as both resistance and support in the past.
If we break above $55,700 and close a few hourly candles above it, we would be interested in placing a long trade on Bitcoin. But if we do face rejection there, we would be watching the support at $53,700 closely.
Conclusion: Is Bitcoin (BTC) Bearish?
Bitcoin has just experienced another sell-off and is looking quite bearish in the short term. However, this could be the bottom for Bitcoin, and we can expect a shift in trend from this level. If Bitcoin manages to hold $53,700 successfully till Monday, the buying pressure might increase dramatically.
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