In the coming days, a deceleration in Bitcoin’s bullish momentum is anticipated. Bitcoin is currently retesting a critical zone on its price chart. Recently, it confirmed a breakout, which has imparted some short-term bullish momentum.
According to analyst Josh from Crypto World, Bitcoin remains within a more extensive bearish trend. However, there has been a short-term rebound from a key support level around $52,500. Despite this temporary recovery, the overall trend continues to be bearish. Nonetheless, Bitcoin managed to break above a resistance zone between $56,000 and $57,000, which previously acted as support.
Immediate Resistance Levels
Resistance at $59,000
Bitcoin is expected to face resistance just above $59,000, which could potentially slow its upward movement.
Major Resistance at $60,000 to $61,000
If Bitcoin succeeds in breaking past the $59,000 level, it will then encounter a significant resistance zone around $60,000 to $61,000. This area is a major barrier as it was previously a strong support level and has now turned into resistance.
Support Levels to Watch
Break Below $56,000
A drop below $56,000 would signal a return to the bearish trend and could indicate a continuation of the larger downtrend. At the time of writing, Bitcoin was trading slightly above the $56,000 levels.
The Bitcoin chart indicates that Bitcoin is losing some of its bullish momentum. The Relative Strength Index (RSI) has shown relatively horizontal highs, even as the price made new higher highs.
According to the analyst, this current price movement is reminiscent of what occurred in May, where Bitcoin experienced a major dump followed by a bounce from support. During that period, Bitcoin also broke above key resistance levels, flipped them into support, and witnessed short-term bullish momentum.
