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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $42,000 mark and has been going sideways for the past few days. The price has not moved much since BTC faced rejection at the $44,000 mark and has been consolidating from the past couple of days. As discussed in our previous analyses, the support Bitcoin needs to hold now is at the $40,700 mark. As long as the price is trading above this level, we can expect a bullish reversal for Bitcoin.
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Analyzing the Charts
If we take a look at the 1-hour charts for Bitcoin, we can see that the price is facing clear resistance at the $42,500 mark. It is a level that was being used as support previously by BTC and is now pushing the price lower.
We can also see that the price is moving within this squeezing downward channel and must break out of it to gain some bullish momentum.
It can be observed that Bitcoin is currently respecting these trendlines. As soon as the price breaks above the trendline resistance we can expect a nice pump for BTC.
We can also see that the price is headed towards the $40,700 mark within this channel, and it is likely we will test it before breaking above. Once the price breaks above it, we can expect it to retest $44,000 once again.
However, we will still wait for BTC to retest the $40,700 mark and would not be trading this channel just yet to be on the safer side.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is currently trading in a consolidation range and is struggling to gain any momentum. The past few weeks have been challenging for Bitcoin and it continues to move within a downtrend. We can expect Bitcoin to make a major move in the next few days, and would not be placing any trades until it moves out of this zone.
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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