Bitcoin
Bitcoin Inflows Paint a Bullish Picture Amid $56,000 and $58,000 Price Targets
Is Bitcoin bottoming out after the latest dump or will the price continue its short-term downtrend as this signal indicates? Crypto World Analyst Josh looked at several BTC charts and said that there were not many changes in the last day.
Examining Bitcoin’s daily chart, he said the price continues a short-term bounce from the support area between $60,000 and $61,000 recently seen at the local low. If there is a confirmed break below $60,000, the next significant support area will be between $56,500 and $58,000.
Bitcoin’s daily RSI has entered oversold territory for the first time in many months, which historically indicates that the price is very close to or has already reached a local low. This suggests a potential recovery or sideways consolidation in the near term.
Downtrend resistance and relief levels
Downtrend relief may involve a reduction in bearish price action or momentum, resulting in choppy sideways price action or a bullish bounce to areas of resistance around $63,000 to $64,000, and possibly from $67,000 to $68,000, with massive resistance between $72,000 and $74,000. .
It would only become more bullish in the short term if there were breaks above significant resistance levels such as $64,000 and ideally $68,000, along with a bearish trend reversal in the DXY. Without such bullish reversal signs, the market remains in a short-term bearish trend. However, some relief from this trend is expected in the short term, likely in the next few days to a week.
Positive News and Bitcoin ETF Flows
The analyst also discussed positive news and said that on Tuesday there was a change in Bitcoin ETF flows. After weeks of near-constant net outflows, there has finally been a net inflow. Although it was a relatively small net inflow of about $31 million, it is still better than the outflows. If this trend of net inflows continues, it could be bullish for Bitcoin.