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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $45,800 mark and is looking quite bearish in the immediate short term. The price did broke below the crucial support around $45,500 region that we mentioned in previous analysis, and is now headed towards the $44,000 region. BTC experienced a flash crash earlier this month and the price has not recovered much since. It is still moving in a downtrend and the reversal has not been confirmed yet. Let’s take a look at Bitcoin charts on 1-day timeframe to determine what to expect next.
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Analyzing the 1-day Charts
If we take a look at the 1-day charts for Bitcoin, we can see that it is forming a falling wedge and a big breakout might just be around the corner.
A falling wedge is a bullish structure that usually forms before a huge breakout. If this pattern does play out, we can expect Bitcoin to retest the $60,000 region soon.
The breakout target for this structure would be above the $70,000 mark which means if it plays out we will see a new all-time high for Bitcoin.
We can also see that BTC has formed similar sort of patterns in the recent past and every time the price has skyrocketed after breaking out.
We can see that this familiar structure has played out nicely every time in the past and has a bullish biase. However, we would not just be placing any trades on Bitcoin and will wait for the breakout confirmation before making any moves.
Conclusion: What is Next for Bitcoin (BTC)?
Bitcoin is looking quite bearish at the moment and the fear in the market space is increasing. There is a fair chance of BTC correcting further but we can also not ignore the structure presented above. We are still bullish on Bitcoin in the long term and would be interested in trading this falling wedge. However, we will only be placing our trade after a breakout confirmation.
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