Can Bitcoin Hold the Support at $46,600 or Will We Witness Another Sell-off?

What is Bitcoin (BTC) Doing Right Now?

Bitcoin is trading just around the $47,000 mark and is looking quite bearish in the immediate short term. We did mention in our previous analysis, how BTC is still moving in a downtrend and could expect it to make another move soon. The level we are currently watching for Bitcoin is the $46,600 mark that has been holding as support since the flash crash. Let’s take a look at the Bitcoin charts to see what story is building.

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Analyzing the Charts

If we take a look at the Bitcoin charts, we can see that it is forming a descending triangle which we mentioned in our previous analysis as well.

A descending triangle is a bearish pattern that indicates that further correction is on the cards. We can see that BTC has been moving within this structure since the last crash.

Now if BTC fails to hold this level in the coming days we can expect another significant move towards the downside.  In that scenario, the support we will watch for Bitcoin is the $42,000 mark which we are expecting to hold.

If that happens we would be putting another higher-low for Bitcoin on the 1-day timeframe and BTC could bottom out there.

It could also turn out to be a double-bottom bullish scenario for Bitcoin and we would be interested in accumulating more Bitcoin there.

Conclusion: What is Next for Bitcoin (BTC)?

Bitcoin is still trading in a critical range and is looking a bit bearish in the short term. If the price fails to move out of the descending triangle in the next few days, it is likely that we will break below this structure and have a further correction. If that happens we would be interested in accumulating more Bitcoin. On the other hand, if the price does move above the structure, BTC could regain strong bullish momentum. At the moment, we would not be placing any trades on Bitcoin.

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