Is Bitcoin Showing Similar Warning Signs in Price Pattern No Confirmation of Breaking 70000 Barrier Yet
Bitcoin is currently facing resistance in a critical area, which could indicate a short-term warning signal. In a recent video, analyst Josh highlighted that not much has changed in the last day. He explained that these short-term trends for Bitcoin can persist for several weeks or even a couple of months. While Bitcoin has seen some relief from the short-term bearish trend in the past week, there hasn’t been a confirmed reversal towards a bullish trend.
Josh has been bearish on Bitcoin’s short-term trend for the past few weeks due to the bullish trend in the DXY. He has consistently expressed this opinion since Bitcoin’s price was around $70,000. During this bearish trend, he acknowledged that there could be small upward bounces and sideways consolidations, similar to pullbacks that occur during a bullish trend.
To invalidate the bearish trend, a confirmed bullish reversal signal is required, such as a breakout above resistance. As of now, Bitcoin remains in a short-term bearish trend, with the current price action representing a temporary break from this trend.
Josh emphasized the importance of watching certain price levels. He stated that a confirmed break below $60,000 with a daily candle close could lead to a move down to the support area between $56,000 and $58,000.
At present, Bitcoin is facing rejection in the critical resistance area of $63,000 to $64,000, as previously warned by the analyst. He observed significant sell pressure and resistance within this range, which has resulted in expected challenges for the price. In the short term, he anticipated continued sideways price movement within the range of $60,000 to $64,000.
Despite the sideways consolidation, the analyst reiterated that Bitcoin is still in a short-term bearish trend until proven otherwise. He emphasized the need for confirmed bullish reversal signals to invalidate the bearish trend.
Lastly, the analyst analyzed the Bitcoin liquidation heatmap. He pointed out that recent liquidity around $62,100 to $62,200 has been wiped out. The next significant liquidity levels to monitor are around $61,000 and $64,000, with more liquidity currently at $61,000. This suggests that Bitcoin’s price may gravitate towards the $61,000 liquidity level in the near future.
Tags: Bitcoin, Crypto news, Cryptocurrency, Price Analysis