What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $56,300 mark and has been slowly going down for the past few days. The price has reached a monthly low and we are finally having the correction that is long overdue. Bitcoin fell below the $58,000 mark yesterday and faced rejection on retesting the level. That resulted in a sell-off and pushed the price even lower. Now, let’s take a look at the levels we will be watching for BTC in the immediate short term.
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Analyzing the Charts
The first level we will be watching for Bitcoin right now is the $55,800 mark. This level is currently acting as our support and must hold it in the coming hours to stay bullish. The second level we will be observing is the $58,600 mark as it was holding as support previously and has now flipped into resistance.
Breaking above $58,600 will give BTC bullish momentum and we can also expect a relief rally.
On the other hand, if we fail to hold the support at $55,800 the next level, we would be watching is the $54,000. If the price drops to $54,000 or below we could expect a significant increase in buying pressure.
However, if we take a look at the RSI on the shorter timeframes, we can see that there is a bullish divergence.
The price action is forming lower lows while on the RSI we can see higher lows. This is a bullish indicator and Bitcoin might bottom here as well.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is currently going through an overdue correction and is looking a bit bearish with its price action. However, as discussed in this analysis we are expecting Bitcoin to show some bullish signs in the coming hours. BTC can still drop to the $53K – $54K level in the coming days and if that happens, we will consider it an excellent opportunity to accumulate more Bitcoin.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
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