Bitcoin
The price drops below $65,000. Could the downtrend change today?
The current state of the cryptocurrency market, especially Bitcoin and Ethereum, constantly refuses to give a clear indication of ‘what’s next?’ Crypto World Analyst Josh said there is a big warning sign flashing on the Bitcoin chart as the price is facing rejection from a critical resistance area.
Looking at the chart, the analyst notes that little has changed in the last day. An important observation is the upward movement in the DXY (US Dollar Index), which is setting new highs in its short-term trend. This uptrend in DXY is a bearish sign for Bitcoin and crypto as historically, a rising DXY correlates with falling Bitcoin prices.
The analyst explains that although we may still be in a larger bull market for longer periods of time, the short term trend for Bitcoin is bearish. This downtrend is expected to continue as long as DXY remains bullish. For the short-term trend to turn bullish, a bearish reversal in DXY is necessary, which has not happened yet.
What’s next for Bitcoin?
Analyzing the diary Bitcoin On the chart, the analyst observes a rejection of the resistance area between $67,000 and $68,000, with a pullback occurring as the price approaches this level. This suggests significant selling pressure in this resistance zone. The analyst advises against becoming overly optimistic until a confirmed breakout above $68,000 occurs. Key support levels to watch are between $63,000 and $64,000. If Bitcoin breaks below $63,000, it could fall further to previous lows around $60,000, $58,000 and $56,000.
Despite these short-term bearish trends, the analyst notes that as long as Bitcoin remains above the previous low of $56,000 to $58,000, the larger bull market could still be intact. The market could be in a massive sideways consolidation similar to previous patterns.
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