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What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading just below the $40,000 mark and is still looking bullish on the lower timeframes. The price has been struggling to gain any sort of bullish momentum over the past couple of days and it looks like we will see a further correction for Bitcoin. Right now, the price is holding the support at $39,200 but could break below it on the third retest. The price is being squeezed towards the downside and we can expect BTC to visit the $37,000 range. In this article, we will take a quick look at the crucial levels Bitcoin is respecting on the 1-day timeframe.
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Analyzing the Charts
The first important level we can identify on the 1-hour chart for Bitcoin is the $39,200 mark. It is a crucial level that has been holding the price up for the past three days and we are expecting Bitcoin to hold it longer on the 1-day timeframe.
Breaking below this level would not be easy for the bears as this level is coinciding with the bottom of the channel Bitcoin has been respecting for months now.
However, the price is being squeezed towards the downside on lower timeframes and we could also break below this level in the coming hours.
If that happens, we will expect a quick bounce back from the $37,700 zone. Bulls will likely try to hold this level and after a quick drop, the price will still close the candle above $39,200 leaving a wick behind. However, if the price closes below this level we will see another big correction for BTC in the coming days.
On the other hand, the current resistance we are watching for BTC is the $40,800 mark and once the price gets above this level it would struggle to reclaim the $42,100 level.
Conclusion: Final Verdict on Bitcoin (BTC)
Bitcoin is currently in a critical spot and could go either way in the coming days. Right now, the price is sitting on a strong support level. Bitcoin is still showing bearish signs on the lower timeframes and if it fails to hold $39,200 it would be interesting to see how the bulls will react next. If they try to hold the price we will see a wick below the rising channel and Bitcoin will continue towards the upside once again. On the other hand, if the price closes below another sell-off will be on the cards.
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