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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $44,000 mark and has been going sideways for the past several hours. The price is facing resistance at the $44,300 mark and is likely to break above it in the coming hours. As mentioned in our previous analysis, the target we are eyeing for BTC right now is the $45,600 region. Let’s switch to the 1-week timeframe for Bitcoin and analyze the latest charts to see where the trending is tilting in the mid-term. Bitcoin has gained momentum on the lower timeframes, but it still hadn’t broken the downtrend on longer timeframes.
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Analyzing the Weekly Charts
If we take a look at the 1-week timeframe for Bitcoin there is a prominent bearish indicator that cannot be ignored. The last weekly candle BTC closed was a bearish pin bar candle and that is not a good sign. We can see that the candle formed as BTC faced strong rejection around the $45,600 region.
A pin bar candle usually indicates a trend reversal. In this scenario, the bearish pin bar candle indicates that the downtrend might continue.
Also, if we take a look at the past data, we can see that BTC did form the same candle in October. Initially, we saw a fake-out for Bitcoin after that candle but eventually, the price dropped significantly.
We can also see that the candle closed below a significant trendline resistance. It is crucial for Bitcoin to close a candle above this trendline resistance in order to continue the trend.
Currently, Bitcoin is trading above this trendline but we would have to wait and see how it closes on the weekend.
Conclusion: Is Bitcoin (BTC) Bearish?
The charts analyzed above do give a picture that Bitcoin is looking quite bearish in the mid-term. However, these are still just assumptions as crypto space is highly unpredictable. On the lower timeframe, Bitcoin is looking quite bullish and we might as well end up breaking above this trendline by the end of this week. We also have an inverse shoulder pattern forming on the 1-day timeframe which is a bullish sign. Right now we will wait for the price to make a significant move and will react accordingly.
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