What is Bitcoin (BTC) Doing Right Now?

Bitcoin is currently trading just above $57,000 and is looking quite bearish in the short term. The price has been falling consistently for the past several hours and is headed towards the $54,000 level as predicted in our previous analysis. BTC has currently found some support around $57,000 but it is likely that we will touch the lower levels soon before making any huge moves toward the upside.

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Analyzing the Charts

If we take a look at the 1-hour charts we can see that we sort of formed a double-top pattern before the sell-off was triggered. Bitcoin was struggling to break above the $60,000 mark and facing multiple rejections in that region resulted in a sell-off.

Strong resistance around $60,000 means that bears are currently in control and are trying to push the price lower. However, if we look at the 4-hour charts, we can see a falling wedge for Bitcoin.

A falling wedge is usually a bullish pattern and has a higher probability of breaking towards the upside. We can now expect BTC to come down and retest the bottom of this falling wedge before bouncing back again. It also means that the $54,000 level is still in play and we could fall further.

If we break out of this falling wedge in the coming week, we will be extremely bullish on Bitcoin in the short term. We will stay patient till then and trade cautiously.

Conclusion: Where is Bitcoin (BTC) Headed Next?

Bitcoin is currently going through a correction and we can expect it to bounce back soon in a week or two. Fundaments are still looking strong for the crypto giant and we are extremely bullish in the long term. Right now we will be watching this falling wedge closely and once we break out of it we would not be hesitant to long BTC.

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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