Bitcoin
Bloodbath confirmed, next stop $56,000
Bitcoin price is currently trading just above the crucial $58K level, leaving everyone surprised by its abrupt drop below the $60K mark. Crypto World Analyst Josh said that at this point, there is a reversal signal appearing on the Bitcoin chart. Bitcoin price is currently retesting a critical support level after encountering resistance, he said.
While discussing Bitcoin’s daily chart, he delivered some good news and talked about a significant recent change: a pullback and possible bearish trend reversal in the DXY, which could signal a bullish trend reversal for Bitcoin.
Bitcoin Price and Support Levels
New Critical Support Test: Bitcoin was recently retesting crucial support levels between $60,000 and $61,000 after a recent rejection from resistance around $63,000 to $64,000. However, so far, the price has fallen below $60k.
Short-term outlook: Amid a short-term downtrend, the analyst anticipated a potential sideways movement within the current support-resistance range. He said a break below $60,000 could signal further decline towards the next support zone of $56,000 to $58,000. If the analyst’s predictions are correct, Bitcoin will revisit the $56,000 levels.
Confirmation requirements: To shift from this bearish outlook, the analyst explained the need to confirm a breakout above resistance levels through daily candlestick closes above key thresholds, along with corroborating signals in the DXY. He then referenced his previous analysis from about a month ago, noting a warning signal in the DXY that preceded the potential confirmation of the bearish trend for Bitcoin.
He also discussed the recent volatility in Bitcoin’s price, particularly during the weekdays, contrasting with the historically lower volatility on the weekends. He noted recent movements in Bitcoin’s 4-hour RSI, which had moved from overbought to oversold territories, predicting a pullback as seen in recent days.