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Bitcoin Inflows Paint a Rosy Picture Between $56,000 and $58,000 Price Targets
Is Bitcoin bottoming out after the latest crash or will the price continue its short-term downtrend as this signal indicates? Crypto World Analyst Josh looked at various BTC charts and said there haven’t been many changes in the last day.
Looking at Bitcoin’s daily chart, he said the price is continuing 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 is 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 rebound or sideways consolidation in the near term.
Resistance levels and relief from the downtrend
Relief from the downtrend could result in a reduction in bearish price action or momentum, resulting in choppy sideways price action or a bullish bounce higher into resistance areas around $63,000 – $64,000, and possibly from $63,000 – $64,000. 67,000 to $68,000, with huge resistance between $72,000 and $74,000.
It would only become more bullish in the short term if breakouts above significant resistance levels like $64,000 and ideally $68,000 occur, along with a bearish trend reversal in the DXY. Without these bullish reversal signals, the market remains in a short-term bearish trend. However, slight relief from this trend is expected in the short term, probably in the next few days to a week.
Positive News and Bitcoin ETF Flows
The analyst also discussed the positive news and said that there was a shift in Bitcoin ETF flows on Tuesday. After weeks of almost constant net outflows, there has finally been a net inflow. While this 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.