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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $47,500 mark and is struggling to get above the resistance near $48,800. We did see BTC gain some bullish momentum in the past 12-hour or so but it seems to be heading lower once again. The price did reject the resistance zone twice on the 1-hour timeframe and we will be retesting the $47,200 support once again. Let’s take a look at the Bitcoin charts to see the price will be heading in the coming days.
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Analyzing the Charts
If we take a look at the 4-hour charts for Bitcoin we can clearly observe that the price is still in a downtrend. We can see consecutive lower highs on this timeframe, and it is also an indication that we would be heading lower.
The price is currently coming to retest the $47,200 mark and it seems like we could fall below it once again.
If we zoom out, we can also see that Bitcoin is forming a descending triangle on the 4-hour timeframes and the structure might play out soon.
A descending triangle is usually a bearish pattern that indicates that a sell-off is near. The buying strength is decreasing and once we move below this triangle, we can expect more correction for Bitcoin.
If a sell-off triggers we are likely to find support around $42,000 and could fall further lower as well in the coming days.
There are no guarantees that this structure will play out and if BTC manages to stay above $47,200 we could bottom out here as well. However, we will still be refraining from placing any short-term trades on Bitcoin.
Conclusion: The Final Verdict on Bitcoin (BTC)
Bitcoin is still in a critical position and could make a big move in either direction. Right now, we would not be placing any new trades on Bitcoin and will let the price play out. If we do see price falling below the triangle structure, we would be interested in shorting BTC with a tight stop loss.
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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