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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the 40,500 mark and is looking quite bearish in the short term. The price has been dropping consistently for the past couple of days and BTC is now trading below a crucial support level. As mentioned in our previous analysis the support we are currently watching for BTC is the $40,000 to $40,500 region. Dropping below these levels could trigger another sell-off for BTC. Let’s take a look at the latest charts to see where the price is headed next.
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Analyzing the 1-Day Timeframe
If we take a look at the 1-day timeframe we can see that Bitcoin is currently sitting at a really crucial support zone. The price is trading just above the $40,000 region and it has a lot of significance for Bitcoin.
If we take a look at the past data, we can see that this price zone has acted as a strong resistance and support level in the past. BTC did feel below it not a long while ago but that was considered a fake out as the price pumped back.
We can also see that Bitcoin has broken below this important trendline that has been acting as both resistance and support for BTC for the past several months.
It is likely that Bitcoin will drop below the $40,000 mark and the support we will be watching for it on the 1-day timeframe is the region slightly below the $35,000 mark.
The zone marked in the above chart did hold the price nicely during the fake-out. We can once again expect it to act as strong support in the coming days.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is still moving in a downtrend and is looking quite bearish at the moment. What we want to see BTC here is a bounce back from the $40,000 mark. If the price drops below $40,000 and starts closing daily candle below it, we would be in for another dip. Due to the general tension rising across the world the price of BTC has also been affected significantly.
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