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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $42,800 mark and seems to be bouncing back nicely from the support at $42,500. We did see BTC face massive rejection around the $44,000 region which shot the price down to $42,500 in no time. However, the price seems to be holding the support nicely and we can expect a bounce back from here. Let’s take a look at the latest Bitcoin charts to see where the price is headed in short term.
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Analyzing the Charts
If we take a look at the 1-hour charts we can see that the price is bouncing off nicely from the support at $42,500. It is common to see the price go back and test the previous resistance as support before going higher.
Also, if we switch to the 4-hour timeframe we can see that the price is forming the cup & handle pattern which we discussed in our previous analysis as well.
A cup & handle pattern is a bullish pattern that usually forms before a big breakout. If this structure plays out, we will soon be seeing BTC challenging the resistance at $45,800.
On the other hand, if the price starts gaining bearish momentum and BTC fails to hold the $42,500 mark we will be headed towards the $40,700 mark once again.
If that does happen Bitcoin will start looking bearish once again and the price will likely fall below $40,000 in the coming weeks.
Conclusion: What is Next for Bitcoin (BTC)
Bitcoin is currently retesting the $42,500 mark to flip into support and move higher in the coming days. We are still bullish on Bitcoin in the immediate short term and would not be hesitant to long it if it breaks above $44,000 in the coming days. However, we are still being cautious and would not be placing any trades when the price is on a crucial support level.
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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