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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $47,500 mark and is looking bearish in the immediate short term. We did see BTC gaining some bullish momentum yesterday, but it faced rejection around $49,200 and is headed lower once again. Bitcoin is trading sideways since the last flash crash and with the price forming lower highs, we can also see that it is moving in a downtrend. Let’s take a look at Bitcoin charts to see what we can expect from it in the short term.
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Analyzing the Charts
If we take a look at the charts, we can see that Bitcoin faced a clear rejection around $49,200 and is now headed towards the $46,600 mark once again. Previously Bitcoin had support near the $47,200 mark but now that support has moved to $46,600.
Bitcoin has been holding the support at $46,600 quite nicely for the past few weeks and once it breaks below we could expect another sell-off.
On the 4-hour timeframe, we can also see that Bitcoin is forming a descending triangle which is likely to break towards the downside.
We can see that the price is respecting the trendline resistance and forming lower-highs consistently. BTC is coming to retest the bottom of this triangle and we would have to see how the price reacts this time.
If the structure does play out the next support level we will be looking for Bitcoin would be around the $42,000 region.
However, if Bitcoin breaks above this structure and starts closing 4-hour candles above it we could also expect a trend reversal.
Conclusion: The Final Verdict on Bitcoin (BTC)
Bitcoin is still not out of the critical zone and is moving in a downtrend. On the 4-hour timeframe, the price is consistently forming lower-highs and we need to break this trend for Bitcoin to turn bullish once again. Right now, we would not be placing any short-term trades on Bitcoin and would wait for it to move out of this descending triangle.
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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