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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $43,000 mark and is looking quite bearish in the immediate short term. The support region we were previously watching for BTC was the $45,800 area which the bulls held nicely for over a month. We did talk about the importance of this level in our previous analyses and how breaking below it could result in another sell-off. Let’s take a look at the latest Bitcoin charts to see where the price is headed in the short term.
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Analyzing the Charts
If we take a look at the 4-hour charts for Bitcoin, we can see that the price was forming a head & shoulders pattern that is currently playing out in the form of this sell-off.
The head & shoulders pattern is a bearish structure that usually forms before a big sell-off. The technical breakdown target for this head & shoulders pattern is around the $40,000 mark. However, it is likely that the price will find some support at the $42,700 mark.
The $42,700 mark has acted as both resistance and support in the past and we are likely to hold it in the near future. On the other hand, if the price does break below this support the next area, we would be watching for support is the $40,000 mark.
This sell-off could also prove to be a bear trap and this might be an excellent opportunity for us to accumulate more BTC. If the price bounces back from here strongly this could very well be the bottom for Bitcoin.
Conclusion: Final Verdict on Bitcoin
Bitcoin is looking quite bearish at the moment and there is a slight chance that it could correct further as well. Right now, we would not be placing any trades on Bitcoin and will wait for it to gain some bullish momentum. Ideally, we would be interested in trading BTC when it’s back above the $45,800 region.
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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