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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is still trading around the $21,000 mark and has been mostly trading sideways for the past several days. The price has not moved much after losing the support at $22,600 and is consolidating just above the previous major support at $20,600. Bitcoin is moving in a downtrend on macro timeframes, and we can expect the price to break below $20,600 in the coming days. The buying pressure has decreased significantly, and it seems unlikely we will see another push from the bulls in the coming days. Let’s take a quick look at the latest BTC charts to see how the price could play out in the short term.
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Analyzing the Charts
If we take a close look at the 1-hour timeframe, we can also notice that the price is being squeezed a little towards the resistance at $21,700.
It is possible that the price will now form a lower low, and we will see the downtrend continue on the 1-hour timeframe.
On the other hand, if we switch to the 4-hour timeframe, we can notice that the price is still trading within a bear flag pattern.
A bear flag is a bearish continuation pattern that usually forms before a significant price drop. If this pattern plays out successfully in the coming hours or days, we will see another sell-off for Bitcoin.
The support level we will be eyeing for BTC in that scenario is the $19,200 mark. It is a major support level that has held strong in the previous weeks as well.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is still looking bearish on most of the timeframe and could drop further in the coming days. A relief towards $22,600 is still possible, but we can also expect a strong rejection at that level. If Bitcoin does start to break below the bear flag pattern, we will be interested in placing a short trade on the crypto giant.
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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