What is Bitcoin (BTC) Doing Right Now?
Bitcoin has just broken below the support at $48,300 and is looking bearish in the short term. BTC has been moving in indecisive territory for the past few days, and the price can break towards either side.
The next level Bitcoin needs to hold is the support at $47,400. This level has acted as both a support and resistance in the past, and we must hold to regain some bullish momentum. If we manage to break above $48,300 once again in the next few hours, a major move towards the upside is likely.
However, if we fail to break above $48,300, we must hold the crucial level at $46,800.
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Analyzing the Charts
We can see on the 1-hour charts that we are struggling to break above the $49,400 region. We have faced rejection several times around this level and might need to grab more liquidity to break above it.
The $49,500 level is currently showing strong rejection, which gives us reason to believe that the price might fall to the crucial support at $46,800.
Also, if we take a look at the 4-hours chart, we can see that BTC is forming a potential head and shoulders pattern.
This pattern is still forming and will be invalidated if we make another higher high on the 1-hour timeframe. However, if it does play out, we could see a potential $40,000 once again.
We can also see that the volume has been decreasing consistently, which is also a bearish indication.
Conclusion: Where is Bitcoin (BTC) Headed?
Bitcoin is currently looking bearish and is headed towards the $46,800 level. If we fail to hold this level, we fall further to the $44,000 region, where we would consider accumulating more Bitcoin. On the other hand, if we do get above $48,300 in the next few hours, we could gain bullish momentum once again.
However, the former scenario is more likely as all the indicators are currently looking bullish.
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