Bitcoin
Warning signs point to a possible drop to $60K; turning resistance into support is crucial
Crypto World Analyst Josh recently revealed that Bitcoin is currently facing rejection from a critical resistance level and is simultaneously flashing short-term warning signs. This suggests that further sell-offs may be on the horizon. Here’s a detailed analysis of it:
Current Bitcoin Market Behavior
Starting with Bitcoin’s four-day chart, there has been no significant movement over the past day. Looking at Bitcoin’s daily chart, we observe a period of sideways consolidation, with choppy price action mirrored by the US Dollar Index (DXY). The DXY’s neutral position means that it is not exerting much influence on Bitcoin’s price.
Historically, a bearish DXY signals bullish prospects for Bitcoin, while a bullish DXY tends to be bearish for Bitcoin. Currently, the DXY has not confirmed a bullish trend reversal and remains in a bearish trend, which is a positive sign for Bitcoin’s trend and momentum. However, it is essential to note that short-term pullbacks can occur even within an uptrend.
Critical Resistance Levels
At the moment, Bitcoin is experiencing a short-term rejection at the resistance zone between approximately $67,000 and $68,000. The upper boundary of this resistance is just above $68,000, as shown by the volume profile showing substantial trading volume around these levels.
Should Bitcoin manage to break above this resistance with confirmed daily candle closes and potentially flip it into support, the next major resistance lies between $72,000 and $74,000. However, if Bitcoin faces further rejection from this resistance, major support is expected to emerge around $63,000 to $64,000.
A break below $63,000, especially falling towards or below $60,000, would signal a bearish trend reversal. Another bearish indicator would be a bullish reversal in the DXY, which has not yet occurred.
Short-term warning signs
Bitcoin’s daily chart reveals a confirmed bearish divergence on the six-hour chart, where higher highs in the price are met with lower highs on the Relative Strength Index (RSI). A bearish divergence typically signals a loss of bullish momentum and could lead to a sideways consolidation or a short-term pullback.
See also: Robert Kiyosaki’s Bitcoin Price Prediction If Trump Wins US Election