Right now, a major hidden warning signal is showing up on Bitcoin’s chart, signaling potential challenges ahead. According to analyst Josh of Crypto World, despite the price looking strong in the short term, there’s a hidden bearish divergence that could hint at a continuation of the larger bearish trend.
Understanding the Hidden Bearish Divergence
The big flashing signal on the daily Bitcoin chart is a “hidden bearish divergence.” This happens when Bitcoin’s price shows lower highs while the RSI (Relative Strength Index) reflects higher highs. Typically, a bearish divergence is a sign that the market could continue its downward trend. However, in this case, the signal hasn’t been fully confirmed yet.
Key Resistance and Support Levels to Watch
Bitcoin is currently facing resistance at around $64,500. If it breaks this level in the next few days, the short-term bullish trend could continue. However, if the price struggles to push through, we may see a continuation of the bearish trend.
On the downside, support can be found around $63,000 and then further down between $60,200 and $61,200. These are critical levels to watch for any potential breakdown in price.
Overbought Signals in Major Cryptocurrencies
Another crucial factor affecting Bitcoin, Ethereum, and Solana right now is that they are all showing overbought signals in the short term. When a market is overbought, it means there’s limited room for price growth unless there’s a reset. A short-term pullback or sideways movement could help “reset” the RSI and make room for another upward push.
What’s Next for Bitcoin?
We’re currently in a short-term bullish trend, but that could change quickly. If Bitcoin can break through the $64,500 resistance, it has room to push towards $79,000, which is a significant resistance level based on past market action. On the other hand, failure to break resistance could lead to a return of the bearish trend.
In the next few days, the key will be watching for confirmation of either a breakout or a continuation of the bearish trend. Investors and traders should keep a close eye on these crucial levels to make informed decisions.
