Table of Contents
What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the $41,500 mark and is still moving within the consolidation range mentioned in our last few analyses. The price is facing strong resistance around the $42,700 mark and must break above it to get bullish again. Bitcoin has not moved much in the past few days and the trading volume is also low. Let’s take a look at the 4-hour timeframe to see what this price movement means for BTC in the short term.
ByBit allows you to leverage trade Bitcoin; by signing up with our link and making your first deposit, you can receive up to a $4,100 bonus! (Bonus may vary based on deposit amount)
Analyzing the Charts
If we take a look at the 4-hour charts we can clearly observe that the price is almost stagnant for the past few days. The $42,700 mark is acting as the resistance and the $40,600 region is holding well as support.
However, we can also see that these horizontal levels are not the only ones keeping the price in check. BTC is also respecting a trendline resistance and is moving within a falling wedge structure at the moment.
Bitcoin has not closed any 4-hour candles outside of this structure and we can follow it in the coming hours. A falling wedge is usually a bullish structure that indicates a big move is around the corner. IF BTC does break out of this channel in the coming day or two we can expect it to $44,600 mark.
On the other hand, if the price starts to close 4-hour candles below this structure it would be extremely bearish for Bitcoin. In that case, we could expect the price to fall as low as $38,000.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is not moving much on the smaller timeframes and is still trading above a crucial support level. It is vital for Bitcoin to get above $42,700 in the immediate short term as it will help the price gain much-needed momentum. If we do see BTC fall below $40,000 in the coming hours or days, it would be an extremely bearish sign and would call for a further price correction.
Margin Trading for Beginners
If you are interested in trading Bitcoin with leverage, you can go through our Margin Trading Guide to get familiar with this concept. You can also check our list of best crypto exchanges to choose the platform that best suits your needs.
Trade Crypto on Phemex
Want to trade Bitcoin or Ethereum? Sign-up on Phemex today with our link and claim a bonus of up to $4,100 on your initial deposit. (Bonus may vary based on deposit amount)
[phemex]
