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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below the $42,000 mark and is looking quite bearish for the past few days. It did touch the $41,000 mark briefly today and could still go back to retest the $40,000 region before reversal. Right now, the resistance level we are watching for Bitcoin is the $42,700 mark. It is a significant level, and we were previously watching it as support.
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Analyzing the Charts
If we take a look at the 1-hour charts, we can see that BTC has some sort of support near the $40,800 mark. It is a region that has acted as both support and resistance in the past and could likely hold in the coming days.
However, we can also expect the price to drop to the $40,000 mark even if it happens just for a brief moment. This price zone could likely be the bottom for Bitcoin.
On the other hand, if we switch to a 1-day timeframe we can see that BTC is trading below crucial trendline support.
The price has not fallen below this trendline since August 2021 and it is crucial for Bitcoin to flip it back into support.
We can also see that the price action is now forming a falling wedge which is a bullish sign. If this structure breaks out in the coming days, it will confirm the reversal for Bitcoin.
The breakout target for this structure would be just below the $50,000 mark and BTC can reach it within days. However, if the price fails to hold above $40,000 we could see more correction for Bitcoin towards the $37,000 region.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin has been going through a correction phase for the past few weeks and is still moving in a downtrend. The $40,000 mark is a crucial level for Bitcoin, and we are likely going to see a reversal from here. However, we would still be trading BTC cautiously and would not place any short-term trades on it. As we approach the weekend, the price will likely go sideways for the next couple of days.
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