What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $21,500 mark and is looking extremely bearish on the lower timeframes. The price did break below the support at $22,600 successfully, and the sellers are now taking control of the market. BTC was trading above this support level for almost three weeks and has finally moved out of that zone. The macro timeframe is still bearish for Bitcoin, and we can expect the price to visit the bottom again in the coming weeks. Let’s take a quick look at the latest charts for Bitcoin to see where the price could be headed in the short term.
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Analyzing the Charts
If we take a quick look at the latest 1-day charts for Bitcoin, we can see that the price has broken below the rising wedge structure we discussed in our previous analyses.
A rising wedge is a structure that indicates that the price is being squeezed towards the upside and will eventually lose momentum.
The horizontal level we were watching as support here was the $22,600 mark. As the price has broken below that level, we will be eyeing the breakdown target next, which is around the $20,600 level.
The $20,600 mark has acted as strong support in the past. Also, if we spread the Fibonacci retracement tool from the previous bottom, we can see that the $20,600 mark is also 0.618 of the Fibonacci.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently trading below a crucial support level and could drop further in the coming hours. We are now entering the weekend, and the price will likely drop further. The support that will hold in the short term is the $20,600 mark. The macro trend is also still bearish for Bitcoin, and a new bottom in the coming weeks is also possible.
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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