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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $42,000 mark and is looking quite bearish in the short term. The price has been moving in a downtrend for several weeks now and the fear is rising in the market. Even though we have witnessed this kind of downtrend before as well, people have already started to get bearish on Bitcoin. Let’s take a look at the latest Bitcoin charts to spot some bullish signs that are indicating a potential reversal.
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Analyzing the Charts
If we take a look at the 1-day charts for Bitcoin we can see that the price is still moving within this falling wedge since November.
A falling wedge is usually a bullish pattern in which price gets squeezed towards the downside before a big breakout. We have seen BTC form this pattern on 1-day timeframe previously as well on several occasions. Every time Bitcoin managed to break out of this pattern it ended in a major bullish run.
We can also see that the price formed this pattern after the sell-off BTC experienced in May last year.
The chart shows that Bitcoin is now forming a similar pattern and might break out in the next few days. It also shows that the last time Bitcoin formed a falling wedge like this, it had a massive breakout.
If the pattern does play out the technical target for Bitcoin would be around the $60,000 mark.
However, we must also not ignore the fact that the price is just trading above a major support level, and if BTC fails to hold it, we could see another sell-off.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is currently in a critical zone, and it is hard to predict what is coming next. If we take a look at the past data, it is likely that we will break out of this falling wedge and BTC will continue its bullish cycle. However, if the price loses the support at $40,700 we could see some major correction for Bitcoin in the coming days.
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