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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading below the support at $57,100 and can go either way in the short term. As mentioned in our previous analysis, the support region we are currently watching for Bitcoin is around the $55,700 mark. If BTC fails to hold this level, we can see another sell-off soon. Let’s look at the daily timeframe to see what we can expect to form it.
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Analyzing the Charts
If we take a look at the daily timeframe, we can clearly see that Bitcoin is going through a correction phase. We are currently trading around the support of around $57,000 and the trend suggests we could fall further.
The support level we would be watching based on the past data is the region around $53,700. On the other hand, the major resistance BTC needs to break is the $60,000 mark.
We can also see that BTC saw a couple of solid rejections and formed a double top before making this correction.
Also, if we take a look at the Fibonacci retracement numbers from swing high to swing low, we can see that BTC is headed towards the 0.5 level.
If we drop to the 0.5 level of Fibonacci it is likely that it will be our bottom and we can expect another leg towards the upside. The region we would be watching for Bitcoin is between $54,400 and $53,800.
Conclusion: Final Verdict on Bitcoin (BTC)
As of now, we are still quite bullish on Bitcoin in the long term. In the short term, BTC is looking quite neutral and there is also a possibility that we might already be at the bottom. However, we would still not be trading Bitcoin in the short term and would wait for a strong confirmation before making any moves. The 0.5 level of Fibonacci retracement is an important indicator and is likely to hold as support if tested.
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