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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below the $33,000 mark and is looking quite bearish at the moment. As mentioned in our previous analyses, the price has been dropping for the past couple of weeks and further correction is also on the cards. The price found strong support around $37,600 previously but fell dramatically after breaking below it. Right now, the selling pressure is high and Bitcoin has not found any strong support in the lower timeframes. Let’s take a quick look at the weekly charts for Bitcoin to see how the big picture is looking.
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Analyzing the 1-week Charts
If we take a look at the 1-week charts the first thing we can notice is that the price has broken below the parallel channel it’s been respected for the past year.
It’s a strong indication that bears are currently in control and the downtrend will likely continue.
Also, if we take out the Fibonacci retracement tool and spread it from the previous bear market bottom of 2020, we can see that the price has broken below the critical level of 0.5.
We can also notice that the 0.5 level was holding as support previously but bears successfully managed to push below it.
Lastly, we can take a look at the Bitcoin logarithmic growth curves and see that the price is at the bottom of the last curve.
Whenever the price is at the bottom of the logarithmic growth curve, we have seen major downside fluctuations for Bitcoin. It also indicates that we are not at the bottom of the cycle yet.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently looking quite bearish and we can expect it to fall further in the coming days. As we can see price is trading below some major support levels and further downside movement is likely. We can also see that the price is at the bottom of the logarithmic growth curve which usually calls for downside fluctuation in a bear market. Right now, we would not be accumulating more BTC and will wait for it to drop further.
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