What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $42,000 mark and has been moving sideways for the past several hours. As mentioned in our previous analysis, Bitcoin is still trading in a critical territory and could drop furthermore in the coming hours.
The levels we will be watching for Bitcoin in the short term are the $42,300 and the $39,600 mark.
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Analyzing the Daily Timeframe
On the 1-day timeframe, we can see that Bitcoin is finally forming a green candle after three red days. BTC has finally found some relief, and we can expect it to gain some momentum in the coming days.
We can also see Bitcoin is currently trying to form a lower-low right complimenting the lower-high it formed recently. This is a bearish indication as we are repeating the exact same pattern we saw before the May price dump.
If we keep following the same pattern we did in May this year, we can expect a big sell-off for Bitcoin in the coming days.
Also, if we take a look at the Fibonacci retracement levels (from swing-high to swing-low), we can see that we are sitting nicely on the 0.5 level.
We will likely come to retest the 0.6 level of the Fibonacci retracement, which is currently at the $38,200 mark. Bitcoin will need to hold this level at all costs as falling below 0.6 could trigger another sell-off.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Bitcoin is currently in a critical region, and we can expect it to go either way in the coming days. September is usually a bearish month for Bitcoin, and we are also witnessing some FUD around financial markets. In the short term, we would wait for Bitcoin to get stable on one of the levels mentioned earlier and trade accordingly.
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