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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently breaking down and is retesting the support at the $45,100 region. We are likely to break below this level because BTC has started to show some bearish signs. For the past few days, the price has also been moving sideways and is struggling to break above the resistance at $46,400.
Breaking below $45,100 would actually be healthy for the price as we still need to retest our previous breakout region.
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Analyzing the Charts
Bitcoin has been trading within the region between $45,100 and $46,500 for the past few days. It is crucial we move out of this region to push BTC to a new price. Even a move towards the downside can help BTC grab liquidity and shoot towards the upside.
On the daily timeframe, we can observe that we have closed a bearish candle. The upside-down hammer is known as the shooting star candle and is an indication of uptrend reversal. This also means we will first move lower before making any big moves.
We also need to watch this important level highlighted on this 4-hour chart. The price has been respecting this region for a while, and we must break below for a retest.
The marked region around $45,000 has been keeping the price from retesting the $42,400 level. Bitcoin is unlikely to break above the resistance at $46,400 if we do not retest the lower region first.
Once we retest it successfully, we will be heading towards our next major target, around the $49,000 region.
Conclusion: Is Bitcoin (BTC) Looking Bearish?
Bitcoin is currently looking bearish for the immediate short term and could fall to the $42,400 region. If that happens, we will see how the price reacts to this level and will proceed accordingly. If we see a bounce back from this region, we will also be interested in putting a long position on BTC. However, for the short term, we will be betting against its price.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. This guide can be helpful for people who are new to Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
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