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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the support at $60,000 and is looking quite bearish in the immediate short term. Bitcoin has been on a steady rise for the past several weeks and in the macro aspect, the trend is still strongly bullish. However, BTC has not seen many corrections throughout the period and there is nothing alarming about the current price action. Let’s take a look at where BTC is at on the daily charts:
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Analyzing the Charts
If we take a look at the daily charts we can observe not only we are trading above major horizontal support but we are also way above our trendline support.
This trendline support also extends to the weekly timeframe where it is a major support level. The fact that we are trading well above this support shows that we are still quite bullish on the macro scale.
However, we are trading below the 21 EMA and 20 MA and we can see that every time we broke below these moving averages we had a small correction.
We can see that every time we went below the 21 EMA and 20 MA the sell-off was extended. However, breaking below this level does not necessarily mean we will retest our trendline support. The $60,000 level is a strong support zone and as long as we do not close a daily candle below it we are still bullish in the short term.
Conclusion: What is Next for Bitcoin (BTC)?
Many people are worried about the current price action as it has liquidated a lot of over-leveraged positions. Bitcoin has been on a steady rise for the past few weeks and corrections like these are healthy for the price action. Currently, we are watching the $60,000 level for BTC as there is strong buying pressure there. Once we break below that level only then we can expect a deeper correction. Currently, we would not be placing any major trades on Bitcoin.
Margin Trading for Beginners
If you are interested in leverage trading Bitcoin, you can go through our Margin Trading Guide to learn more about it. You can also check our list of top crypto exchanges to choose the platform that best suits your needs.
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