What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $41,000 mark and is looking quite bearish in the immediate short term. The price is now trading below the support levels we were eyeing in our previous analysis and might drop further in the coming week. The support we were watching for Bitcoin was the $42,100 mark and it has now broken below it successfully. Bitcoin is now headed towards the $40,000 mark and it would be interesting to see how the price reacts to this level. Let’s take a look at the 1-day charts to see where the price is headed in the short term.
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Analyzing the 1-Day Charts
If we take a look at the daily charts for Bitcoin, we can see that the price is still moving within the rising channel it’s been respecting for months.
We can see that after rejecting the top of the channel the price has been dropping for the past couple of weeks. If the price keeps respecting this structure in the coming days, we will likely touch the bottom once again.
However, we can also notice that this $40,000 to $41,000 zone has some significance and BTC could also bounce from here.
Also, if we spread the Fibonacci retracement tool from swing-low to swing-high we can see that the 0.5 level is coinciding with the highlighted zone. That’s why there is a good chance that the price will bounce from the $40K region.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is currently trading around the $41,000 mark and is showing bearish signs on the lower timeframes. The price is still moving within the rising channel on the 1-day timeframe and there is also a decent chance of a bounce from the $40K region. We are still bullish on Bitcoin in the long term and won’t hesitate to accumulate more at this stage.
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