What is Bitcoin (BTC) Doing Right Now?
Bitcoin is trading just above the support at $55,800 and is currently coming back to retest the $58,600 level. It is in a downtrend, but we can expect a relief rally soon. We may also come to retest the $60,000 mark in the next couple of days.
BTC is also trading below the crucial support of $60,000 and we can expect a further correction. Let’s take a look at what the weekly charts are telling us about the future of Bitcoin.
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Analyzing the Weekly Timeframe
If we take a look at the weekly timeframe we can observe that the price has broken below a crucial support zone (below the $58,000 mark). We can see that the price retested this crucial region three times in the past and never broke below. Right now we are trading below this level and if we close below it we can see further sell-off.
If the level does not hold we will come to retest our trendline support and are likely to bounce back from it. We would also be retesting the 20 moving average which is sitting right above the trendline.
The levels we would be watching at this stage are the region between the 0.50 and 0.62 of our Fibonacci retracement tool.
This shows that we can go below the $54,000 level or at least retest it before moving upwards. We will see which level Bitcoin holds in the coming week and will be trading accordingly in the midterm. The 0.50 and 0.62 levels are important levels of Fibonacci retracement and we can expect strong support there.
Conclusion: Where is Bitcoin (BTC) Headed Next?
As we can see on the weekly charts it is likely that Bitcoin will be testing the lower levels in the coming days. Right now we are expecting Bitcoin to show some bullish momentum on the shorter timeframes and after that, another sell-off is expected. We would currently not be trading BTC in the short term and will wait for it to fall to lower levels to accumulate more.
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