What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $56,500 mark and is looking quite bearish in the short term. BTC has been going sideways for quite a while now and we can soon expect a big move soon. The support level we are currently watching for Bitcoin is the $55,700 mark that has been holding nicely for a while now. Let’s take a look at the 1-hour charts to see what we can expect from Bitcoin in the immediate short term.
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Analyzing the Charts
If we take a look at the charts, we can clearly see that BTC is coming to retest the support at $55,700 once again and might not hold it this time. The price is moving within a descending triangle and could break below it anytime.
A descending triangle is a bearish pattern, and we can expect another sell-off for Bitcoin if we break below it. We can also observe that BTC is forming a head & shoulders pattern within this descending triangle, which is another bearish sign.
Once we break below this pattern we can see a sell-off towards the $53,700 mark. It is a level that has acted as strong resistance previously and we can expect some support there.
We currently have two patterns forming that are indicating a sell-off in the coming hours. If we drop to $53,700 there is a fair chance that Bitcoin will bottom out there.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Bitcoin is still looking pretty solid on the bigger timeframes, and we are bullish on it in the long term. However, for the immediate short term, we would be interested in shorting Bitcoin once it drops below the support at $55,700. It is highly likely that a sell-off will be triggered once BTC loses this level.
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