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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $51,000 mark and seems to be recovering nicely from the flash crash it suffered last week. Right now the price is facing some resistance around the $51,500 mark and BTC must get above it to sustain the momentum. Bitcoin is also facing a crucial trendline resistance on around the $52,000 region which we also pointed out in our previous analysis. Let’s take a look at the charts to see what we can expect from BTC in the coming days.
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Analyzing the Charts
If we take a look at the 1-day charts for Bitcoin we can see that it is currently trading below crucial trendline support. The support held well on several occasions previously, but the flash crash triggered the price below it.
Usually, when the price breaks below such type of trendline support it comes back to retest it before dropping further. Bitcoin is currently doing exactly that and if fail to break above this trendline we can expect a further correction.
We can also see that BTC is forming a potential head and shoulders pattern on the 1-Day timeframe.
If this pattern does play out we can expect further correction for Bitcoin below the $40,000 mark. However, this pattern has not fully formed yet and we could also break out of it if BTC keeps gaining bullish momentum.
We are also currently bouncing from the 200 simple moving average which is a positive sign for Bitcoin.
Right now, we would be observing the Bitcoin price closely and would not be placing any short-term trades on Bitcoin.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is currently looking bullish on the shorter timeframes, but it is not out of danger yet. If we fail to break above the trendline resistance above then it is likely that we will see further sell-off for BTC in the coming days. We can also see that the price is forming a bearish structure and we would wait for BTC to break out of it.
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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