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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just above the support at $29,200 and has been going sideways for the past several days. As mentioned in our previous analysis, we are expecting BTC to break below the $29,200 mark as the price is currently trading below the rising channel we were observing. The next level we will be watching for Bitcoin in the short term is the $27,600 mark. Buyers are likely to step in if the price drops to this level in the coming hours. Let’s take a quick look at the weekly charts to see where the price could head in the mid-term.
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Analyzing the Weekly Timeframe
If we take a look at the latest 1-week charts for Bitcoin we can see that the price is currently moving within a falling wedge.
A falling wedge is a bullish pattern that indicates that the downtrend might be reaching its end. It means the price is being squeezed towards the downside diagonally and could move out any time.
We can also notice that the price is respecting the horizontal support zone around $29,000 – $30,000 nicely.
However, despite being a strong support level, Bitcoin could fall below it in the coming days. The price is likely to test the bottom of the falling wedge before we see a relief rally towards the $35,000 region.
Once the price drops below $29,000 we can see some volatility for Bitcoin. It could also mean wicks towards the $25,000 mark. If that happens, we will see it as a nice opportunity for placing a long trade.
Conclusion: Final Verdict on Bitcoin (BTC)
It is expected that BTC will drop towards the $27,600 region in the immediate short term and further correction is also possible. However, in the mid-term, this would still be a positive sign for Bitcoin as it will indicate a relief rally. BTC has been moving within a major downtrend for weeks now and the selling pressure seems to have dropped significantly at the moment.
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