Bitcoin (BTC) Price Analysis: New Levels to Watch After the Sell-off

7:22 am, Fri, 6 May 22

Current Bitcoin Data

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What is Bitcoin (BTC) Doing Right Now?

Bitcoin is currently trading around the $36,400 mark and is looking quite bearish in the immediate short term. The price is currently trading below a crucial support level ($37,600 region) and could fall further in the immediate short-term. Previously, BTC had found support at $38,700 but faced a strong rejection at $40,000 after bouncing from this level. As soon as the price broke below $38,700 a major sell-off was triggered for Bitcoin. Let’s take a quick look at the latest Bitcoin charts to identify the levels we need to watch in the immediate short-term.

Bitcoin (BTC) Price Analysis 2022 May 06

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Analyzing the Charts

If we take a look at the latest Bitcoin charts, we can see that the price has currently found some support near $36,200.

Bitcoin Price Analysis 2022 May 06

It would be interesting to see how long Bitcoin can hold this support as things are not looking good for the bulls. We can also see that BTC was forming a double-bottom pattern on the 4-hour timeframe which did not play out as the price faced strong rejection at $40,000.

BTC Price Analysis 2022 May 06

This is an indication that the bears in currently in control and are trying to push the price lower.

Right now, we need BTC to gain some momentum and reclaim the $37,600 mark as soon as possible. If the price rejects this level as new resistance, we can expect further correction for Bitcoin.

Bitcoin (BTC) Price Analysis 2022 May 06

On the other hand, if the price rejects this level again, the next immediate support we will be watching for Bitcoin is around the $35,500 mark.

Bitcoin Price Analysis 2022 May 06

If the price rejects the $37,600 zone, it is likely that Bitcoin will drop further in the coming days.

Conclusion: Final Verdict on Bitcoin (BTC)

Bitcoin is currently in the tricky territory and could drop further in the coming hours. The price has broken below a crucial support at $37,600 which is a bearish sign. Right now, we would not be accumulating more BTC immediately. We will wait for the price to bounce from here and show some strength above the $35,000 mark. Reclaiming $37,600 in the coming days could also mean that the bottom is already in for BTC.

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