Bitcoin price forecast Lack of confirmation for breakout or downturn price falls under 66k
Crypto analyst Josh recently discussed the current state of Bitcoin, noting that the cryptocurrency is retesting a crucial support level and displaying a short-term bullish divergence. This signals a potential increase in liquidations in the near future. Despite a recent surge, Bitcoin is struggling to surpass the $70,000 mark.
Josh emphasized the significance of the Bollinger Bands on the 4-day Bitcoin chart, pointing out that they are narrowing, indicating an imminent move in the market. This move could be significant, ranging from 20% to 30%. The Bollinger Band Width Indicator suggests that this major shift has not yet begun. Overall, Bitcoin is experiencing a period of consolidation within a larger bullish trend, reminiscent of patterns seen in mid-2023.
On the 3-day chart, there is a possible inverse head and shoulders pattern emerging, with a potential bullish price target of $86,000 to $87,000. However, Bitcoin must quickly approach the neckline around $71,700 and close above $73,000 to $74,000 with a 3-day candle to confirm this pattern.
At present, Bitcoin is retesting a critical zone between $67,000 and $68,000 on the daily chart, which is marked by significant trading volume and resistance. To shift towards a bullish trajectory in the short term, Bitcoin needs to break and maintain levels above $68,000. Failure to do so could result in continued resistance and possible short-term declines.
In the event of rejection at the resistance level, there is essential support between $63,000 and $64,000. The volume profile indicator highlights a volume gap between $66,000 and $64,000, suggesting a swift movement if $66,000 is breached.
While Bitcoin is experiencing low volatility, there is a short-term bullish divergence on the charts. This could lead to a modest bullish relief, targeting the liquidity area between $67,300 and $67,900. However, a confirmed breakout above $68,000 is necessary to end the current pullback and resume bullish momentum.
Tags: Bitcoin, Crypto news, Cryptocurrency, Price Analysis.