Bitcoin
Without confirmation of a breakout or bloodbath, the price drops below US$66,000
Crypto World Analyst Josh said that Bitcoin is currently retesting a critical support area and showing a short-term bullish divergence. This suggests that more liquidations could occur soon, he said. The analyst discussed the current state of Bitcoin, drawing attention to several key technical indicators and potential market movements. After a meteoric rise, Bitcoin is currently struggling to climb above $70K levels.
Focusing on Bitcoin’s 4-day chart, he said the Bollinger Bands are narrowing, indicating that movement is likely in the coming weeks. This change could be substantial, potentially between 20% and 30%. The Bollinger Band Width indicator is still moving sideways, implying that this big move has not started yet. Overall, Bitcoin remains in a major sideways consolidation within a broader uptrend, similar to patterns seen in mid-2023.
The 3-day Bitcoin chart suggests a possible inverse head and shoulders pattern, which could lead to a bullish price target of around $86,000 to $87,000. However, for this pattern to be confirmed, Bitcoin needs to move quickly towards the neckline at approximately $71,700 and close above $73,000 to $74,000 with a 3-day candle.
On the daily chart, Bitcoin is retesting a critical area between $67,000 and $68,000, a zone with high trading volume and resistance. To become bullish in the near term, Bitcoin must break above $68,000. Failure to do so could result in continued resistance and potential short-term setbacks.
If Bitcoin faces rejection of this resistance, there is important support between $63,000 and $64,000. The volume profile indicator shows a gap in trading volume from $66,000 to $64,000, indicating rapid movement between these levels if $66,000 is breached.
However, the Bitcoin chart indicates low volatility but shows a short-term bullish divergence. This could lead to a slight upside relief, targeting the liquidity area between $67,300 and $67,900. However, a confirmed break above $68,000 is needed to end the current pullback and resume bullish momentum.