What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $48,000 mark and is bouncing back from the support at the $47,500 region. BTC lost the support at $49,200 quite recently and we also discussed that possibility in our yesterday’s price analysis. It is likely that Bitcoin will come back to retest the $49,200 mark as resistance and if it fails to break above further correction will be on the cards.
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Analyzing the Charts
If we take a look at the 1-hour charts, we can clearly see that Bitcoin is forming lower highs and is now moving in a downtrend. It has currently found support at $47,500 but we could go further lower as well. The next level to watch for Bitcoin here would be the $46,400 mark.
We can also observe that BTC is forming a head and shoulders pattern on the 1-hour timeframe which is another bearish indicator.
A head and shoulders pattern is a bearish structure that indicates another sell-off is near. Bitcoin has not formed the left shoulder of the pattern yet so it is still not 100% in play.
However, if this pattern does play out we can expect to retest a strong support zone of $44,000 region. The $44,000 region is a strong area of support and Bitcoin is unlikely to drop below it easily.
Conclusion: What is Next for Bitcoin (BTC)
Bitcoin is still struggling to recover from the flash crash it experienced last week and is looking bearish in the short term. The bulls seem to be losing steam and have not made any significant moves in the past few days. Right now, the price is moving in a downtrend, and we also have a bearish structure for Bitcoin. If the price does form the left shoulder as displayed in the above charts, we would be interested in opening a short position on BTC.
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