What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $42,000 mark and is looking quite bearish in the short term. The price of BTC has been moving steadily towards the downside, and the bulls are slowly losing control. Right now, the important level we need to watch for Bitcoin is the $40,600 mark. It is crucial that BTC bounces back from this level, or we could see another sell-off in the coming days.
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Analyzing the Charts
If we take a look at the charts, we can observe that Bitcoin is looking quite bearish on the shorter timeframes. On the 4-hour chart, the price is squeezing towards the downside and is forming a descending triangle.
A descending triangle is a bearish pattern that indicates that the selling pressure is increasing. If Bitcoin forms another lower-high on the 4-hour timeframe, we will likely break below this structure. The target for this breakdown would be around $36,400.
On the other hand, if we somehow breakout towards the upside, we will again get bullish on Bitcoin in the short term. If the breakout happens, the next target we would be looking at after the retest would be the $48,600 mark.
However, this scenario is unlikely to play out as bulls would have to step up their game to regain control. Also, a descending channel is not a bullish pattern, so the bias is towards the downside.
Conclusion: Is Bitcoin (BTC) Bearish?
Bitcoin is currently looking bearish in the immediate short term and might fall below the $40,600 in the coming hours. If we do go below $40,000, we would see it as a good opportunity to accumulate more BTC. We are still bullish on Bitcoin in the long term and expect it to put a new all-time high by the end of this year.
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