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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $42,300 mark and has been moving sideways for the past couple of days. The price is trading in a crucial zone at the moment and another sell-off here can turn things bearish for BTC. The resistance we are watching for BTC on the 1-hour timeframe is $42,800. The price did try to break above this level yesterday but was pushed down again due to low volume. Let’s take a look at the latest Bitcoin charts to see where the price is headed in the immediate short term.
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Analyzing the Charts
If we switch to the 4-hour timeframe, we can see that the price is trading right above the support at $42,100. There is a decent chance that Bitcoin can bounce back from this level in the coming hours. If that happens the major level, we will be watching for Bitcoin here is the $43,800 mark.
Even if the price falls below $42,100 in the immediate short term, the bounce will still be on the cards. The level we will be watching in that scenario is the $41,400 mark. As long as Bitcoin holds this area, we would still be bullish in the short term.
We can also see on the RSI that Bitcoin is oversold and is printing bullish divergences. The RST reading is forming consistent higher lows where the price is still forming lower lows. It is a bullish sign for Bitcoin and gives us reason to believe that it will likely bottom out here around this price zone.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently trading in a crucial price territory and could go either way in the immediate short term. Right now, the price is forming a bullish divergence on the 4-hour timeframe, and we have reasons to believe that it will bottom out here. If we end up placing a trade here, we will also be using tight stop losses to stay on the safer side. Bitcoin is currently oversold, and this move towards the downside could turn out to be a bear trap.
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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