Bitcoin At Critical Support! Can We Expect Further Correction?

What is Bitcoin (BTC) Doing Right Now?

Bitcoin is currently trading around the $46,500 mark and is still looking quite bearish on the lower timeframes. The price has been dropping steadily for the past few days and BTC has entered a slightly bearish phase. In our previous analysis, we talked about the critical support zone around the $45,800 mark and BTC seems to be bouncing off it at the moment. It would be interesting to see whether the price will gain some momentum here or will we see a further correction. Let’s analyze some Bitcoin charts to see what to expect in the short term.

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Analyzing the Charts

If we take a look at the 4-hour charts we can see that the current support region we are watching for Bitcoin is a critical one. It has held the price for BTC throughout December and dropping below it could trigger another sell-off.

We can also see that Bitcoin is not only sitting on a critical horizontal support, but it is also retesting critical trendline support.

We can see on the above chart that the price is coming to retest the top of this falling wedge it broke out of a few days back. The price did already retest this level after breaking out but formed a double-top around $51,600 and is now retesting it once again.

If BTC fails to hold this critical level of support in the coming days, we will see another sell-off. The support we will be watching in that scenario is the $44,000 level that has held as support in the past as well.

On the other hand, if we see a healthy bounce back from here, the resistance level we will be watching for Bitcoin is the $48,000 mark.

Conclusion: Final Verdict on Bitcoin (BTC)

Bitcoin is currently looking bearish on the lower timeframes and could drop further in the next day or two. We are approaching the end of 2021 and a price drop is always expected at the end of the year. We are still bullish on Bitcoin in the mid-term and are expecting it to get back to higher levels in January. Right now we won’t be placing any short-term trades on Bitcoin and observe closely.

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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