Bitcoin
Final Resistance Levels Revealed, New ATHs Above $74k Confirmed
Bitcoin is currently retesting a crucial area on the chart after a dramatic move that wiped out billions of dollars in short positions. According to Crypto World analyst JoshThis development coincides with a major bullish signal that continues to flash on the Bitcoin chart. Recent price action shows a breakout above the resistance at $64.2K-$64.9K, which is now being retested as support.
This new test comes on the heels of a short squeeze, wiping out billions of dollars in short positions. Historically, Bitcoin tends to move toward areas of high liquidity, and recent action has cleared much of the liquidity between $65,000-$65,500. The next key liquidity levels are around $66,500 and $67,500, with some minor liquidity at $62,000.
In other news, on Tuesday, Spot Bitcoin ETFs saw a massive inflow of over $422 million, with BlackRock contributing $260 million. This shows high investor demand, prompting other providers like Fidelity and ARK to also buy Bitcoin.
Bitcoin Bullish Momentum
While discussing Bitcoin’s charts on the 3- and 4-day timeframes, he noted a small change in the last day. However, there was a development in the decline of the US Dollar Index (DXY), which typically has an inverse correlation with Bitcoin. When the DXY is trending down, Bitcoin is usually trending up, and vice versa. While no indicator is 100% certain, this correlation holds true more than 90% of the time.
Despite a slight pullback in Bitcoin’s price, the overall trend and momentum remain bullish. Key resistances at $60,000-$61,000 and $63,000-$64,000 have been broken and are now acting as new support levels. Bitcoin is currently retesting these levels, potentially confirming them as support.
If Bitcoin confirms a bounce from this retested support, the next resistance levels to watch are $67,000-$68,000, based on historical resistance and the volume profile indicator. A break above $68,000 could pave the way for new all-time highs, with final resistance at $72,000-$74,000.
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