Bitcoin
No bullish reversal confirmation, big drop to $56K on cards
Analyst Josh from Crypto World got it to his latest analysis and revealed that Bitcoin is still showing a short-term bearish signal, repeating its previous price movements. He said that in the last day nothing major has changed.
Examining everyday life Bitcoin From the chart, he saw that the DXY (US Dollar Index) is trending up, forming higher lows and higher highs, indicating a bullish trend for the DXY but bearish for Bitcoin in the short term. This pattern has been consistent since Bitcoin was around $67,000. When the DXY trends up, it usually means a bearish momentum for Bitcoin and vice versa.
Short Term Bitcoin Analysis:
Currently, the short-term trend for Bitcoin remains bearish. It has not confirmed any reversal of the uptrend yet. However, during this downtrend, we could see small recoveries or sideways consolidations. In the past few days, it has been anticipating a breakout or relief from the downtrend for the rest of the week, which seems to be coming to fruition.
In short time, Bitcoin Price The stock has been following a pattern: a slight dip before the weekend, flat prices over the weekend, and increased volatility at the start of the new week. This has been consistent over the past few weeks.
Important Price Targets:
If Bitcoin closes below $60,000, the next significant support level is between $56,000 and $58,000. A break below $56,000 could spell trouble for the higher time frames. For resistance, we have key levels at $63,000 to $64,000 and $67,000 to $68,000, with additional resistance at $72,000 to $74,000.
The analyst also saw a small move lower before the weekend, which has been a recurring pattern. Over the weekend, the price could see flat and low volatility price action, followed by higher volatility next week.
Finally, he said to keep an eye on Bitcoin liquidation levels. There is significant liquidity around $60,300 to $60,400 and $62,500, with substantial liquidations of short positions at $63,700 to $63,900 and $65,000.
Read too: Altcoins almost 100% away from previous ATHs; What does this indicate?