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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $47,500 mark and has been moving in a downtrend for the past few days. The price is currently resting above the crucial support zone around $45,800 and seems to be gaining some momentum here on lower timeframes. The horizontal resistance we are watching for Bitcoin right now is the $48,000 mark. It is crucial for the price to get above this level in the short term or BTC could experience another sell-off. Let’s analyze the 1-day and 1-week Bitcoin charts to see where things are headed.
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Analyzing the Charts
If we take a look at the 1-day charts, we can see that Bitcoin has faced a strong rejection around the $52,000 mark and is now trading below the structure it was forming previously.
We can also see that the current support area is a crucial region that has kept the price in check throughout December.
However, we can also see that right now Bitcoin is bouncing from this trendline support that was held by the previous major lows.
This also shows that this support region is quite important for Bitcoin and dropping below it could be very bearish.
Another thing we need to pay attention to this week is the 50-SMA on the 1-week charts. It is a support level that has held the price up since the sell-off experienced in April-May.
We can clearly see on the chart here that the price is moving below this line after a long time. If this weekly candle closes below this support things could get bearish for Bitcoin.
Apart from that Bitcoin is also forming a huge potential head & shoulders pattern that is likely to come into play if the weekly candle closes below 50 SMA.
Conclusion: What is Next for Bitcoin?
Bitcoin is in a critical spot right now and it would be interesting to see how things play out in the coming days. We are approaching the end of the years things are looking a bit bearish for Bitcoin. However, that is also normal as the price does correct itself in the ending days of December. Right now we would not be placing any trades on Bitcoin and will wait for it to show some bullish momentum.
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