Bitcoin
No bearish reversal confirmation; price eyes $60K with 3% gains
According to Crypto World analyst Josh, Bitcoin is currently experiencing a bullish divergence while the indicator is falling, which points to imminent sell-offs — but this time to the upside. However, he said that the German government is running out of Bitcoin, currently holding less than 4,000 BTC worth just over $200 million. Given their recent selling rates, they could soon exhaust their Bitcoin reserves.
Balancing this selling pressure were significant inflows into spot Bitcoin ETFs. On Thursday alone, there was a net inflow of around $79 million. While these inflows have slowed over the course of the week — from nearly $300 million on Monday to $79 million on Thursday — overall, ETF inflows are helping to offset the selling pressure from the German government, keeping the market relatively neutral.
Analyzing Bitcoin charts, He said that Bitcoin has yet to confirm a bearish reversal. For that to happen, Bitcoin would need to close below $55.8K for four consecutive days. Currently, Bitcoin is holding above that level, indicating that it is still within a larger uptrend. He cites past instances, such as in August and March 2023, where Bitcoin briefly fell below the trend indicator but did not confirm a bearish reversal.
Furthermore, the DXY’s decline is a bullish sign for Bitcoin. Historically, when the DXY is bearish, Bitcoin tends to be bullish about 90-95% of the time. Currently, as the DXY is pulling back, it signals bullish momentum for Bitcoin.
He expects either a mild bullish relief or choppy sideways price action for the remainder of the week, potentially extending into next week. Support levels for Bitcoin are $56k-$57k and $51k-$53k. Finally, the Bitcoin liquidation heatmap shows that after recent liquidations around $56.6k-$56.8k, the next major liquidation zone is between $59.8k and $60k.