What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $41,000 mark and has gained some bullish momentum on the lower timeframes. The price has now flipped the $40,800 level into support and must stay above it in the coming hours to continue the uptrend on lower timeframes. As speculated in our yesterday’s analysis, Bitcoin found support around the crucial zone of $39,200 on the 1-day timeframe and avoided further sell-off. Let’s take a look at the latest BTC charts now to see where the price is headed in the coming days.
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Analyzing the Charts
If we take a look at the latest 1-day charts for Bitcoin we can see that the price has risen slowly in the last two days. BTC bounced back from the bottom of the rising channel it’s been respecting for months and is continuing the trend.
The bottom of the channel is also coinciding with our horizontal support level which means Bitcoin has solid support here. However, Bitcoin still needs to get up above the $42,100 mark to gain some more momentum. It is a crucial level that has acted as strong resistance in the past as well and rejection is also likely.
If the price faces rejection here, things will get quite bearish for Bitcoin. The price will likely break below the rising channel as well and the sell-off will continue. The next support we will be watching in that scenario is the $37,700 region.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is still trading within a solid structure on the 1-day timeframe, so we are not too concerned at the moment. Right now, we are watching the resistance at $42,100 and if BTC can break above this level we will be bullish on Bitcoin in the immediate short term. However, if a strong rejection happens here, we will see it as an opportunity to place a short trade on Bitcoin. We would also be using a tight-stop loss as this could still be a bear trap.
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