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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just around the $47,000 mark and is looking bearish in the short term. The price has been going sideways for the past several hours, and a major move is expected in the next couple of days.
It is likely that we will break down towards the downside as BTC is due a healthy correction. If we do fall to the $44,000 – $45,000 region, it would be considered a nice level to accumulate more Bitcoin.
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Analyzing the Charts
Looking at the 1-day charts for Bitcoin, we can see that we are facing rejection from a key Fibonacci level and are headed downwards for a correction.
The .618 region is also known as the golden pocket, and we are currently rejecting this level. If we manage to break above this level and retest it successfully in the next week, we will be seeing major gains for Bitcoin.
On the 4-hour charts, BTC is still struggling to break back into the ascending channel it fell from a couple of days ago.
This channel is what was keeping the price bullish for Bitcoin, and now we are trading below it. If we retest the channel and show rejection, it could also trigger a sell-off.
On the 1-hour timeframe, Bitcoin is creating lower highs, and another trend line is keeping the price down.
All these indicators suggest that BTC is bearish in the short term. If we do not break above this resistance on the 1-hour chart, we will be heading downwards.
If that happens the level we will be watching is the region between $44,000 and $45,000.
This region has held up nicely in the past as both support and resistance. The $40,000 region is also in play, but we will have to see how the price reacts to our initial support first.
Conclusion: Is Bitcoin (BTC) Bearish?
We are still bullish on Bitcoin in the long term and are expecting it to break its all-time high before the year ends. However, we expect a price correction for the immediate short term and could fall down to the $44,000 – $45,000 region.
If this scenario does play out (and we hold the support nicely at this level), we would consider it an excellent opportunity to long Bitcoin.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. This guide can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of best Bitcoin Exchanges To Trade With.
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