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What is Bitcoin Doing Right Now?
In our previous price analysis, we discussed our short-term bearish targets for Bitcoin. Right now, Bitcoin is behaving exactly how we predicted and is headed towards the $31,000 region.
Bitcoin is looking quite bearish at the moment, but the $31,000 region is a strong support level. We have held this level numerous times in the past and could possibly do it again.
As we can see on this daily chart, Bitcoin has bounced back from the $31,000 region several times in the past. If we end up breaking below this region, our next target would be the support zone at the $28,900 region.
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Where is Bitcoin Headed Now?
We already discussed in our last analysis that Bitcoin is breaking down on the 4-hr timeframe. Now, let’s take a step back and see what Bitcoin is doing on the daily chart.
As we can see, Bitcoin is struggling with the important support at $32,700 and is now finally looking to close below it. This is an indication that Bitcoin’s price is moving within a slope right now.
We can also see that the price is finally moving out of the symmetrical triangle we highlighted a few days ago. At the moment, the price seems to be breaking below it. However, the break of the structure will only be confirmed when the candle closes outside of it.
There is a high probability that this structure will break, and we will go lower. We will have to wait and see whether we find support at $31,000 or at the $28,900.
Our first scenario is that we hold the support at the $31,000 region and bounce back from it. This would push us to our next price target of $36,000, where we would be looking to break major resistance.
The second scenario is that we will fall to the $28,900 region. This scenario is more likely to take place as bitcoin is breaking out of a symmetrical triangle and trading volumes are also low.
Conclusion: Will Bitcoin Drop More?
Bitcoin is showing unpredictability at the moment and is highly volatile. As of now, all signs are showing that Bitcoin is currently bearish. We are likely to touch the $28,900 mark before we make any move towards the upside.
We must wait and see how the price behaves at this level. If it triggers a major sell-off, we might be heading even lower.
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