Bitcoin
No bullish reversal confirmation, big drop to $56K on cards
Analyst Josh from Crypto World got it to its latest analysis and revealed that Bitcoin is still showing a short-term bearish signal, repeating its previous price movements. He said that on the last day nothing important changed.
Examining the everyday Bitcoin From the chart, he saw that the DXY (US Dollar Index) is trending up, forming higher lows and higher highs, indicating a bullish trend for the DXY but bearish for Bitcoin in the short term. This pattern has been consistent since Bitcoin was around $67,000. When the DXY trends up, it usually means a bearish momentum for Bitcoin and vice versa.
Short Term Bitcoin Analysis:
Currently, the short-term trend for Bitcoin continues to be bearish. It has not yet confirmed any bullish trend reversal. However, during this downtrend, we may see small bounces or sideways consolidations. In recent days, he has anticipated a break or relief from the downtrend for the remainder of the week, which appears to be happening.
In short time, Bitcoin Price the stock has been following a pattern: a slight move lower before the weekend, flat price action over the weekend, and increased volatility as the new week begins. This has been consistent over the past few weeks.
Important price targets:
If Bitcoin closes below $60,000, the next significant support level will be between $56,000 and $58,000. Breaking below $56,000 could spell trouble for longer time frames. For resistance, we have key levels at $63,000 to $64,000 and $67,000 to $68,000, with additional resistance at $72,000 to $74,000.
The analyst also saw a small move lower before the weekend, which has been a recurring pattern. Over the weekend, the price could see flat and low volatility price action, followed by higher volatility next week.
Finally, he said to keep an eye on Bitcoin liquidation levels. There is significant liquidity around $60,300 to $60,400 and $62,500, with substantial liquidations of short positions at $63,700 to $63,900 and $65,000.
Read too: Altcoins almost 100% away from previous ATHs; What does this indicate?