Bitcoin At A Critical Juncture: Market Analysis
Bitcoin is standing at a pivotal point, where its long-term trend continues to be bearish. However, short-term indicators suggest a potential shift towards bullish movement. The key to this transition lies in Bitcoin’s ability to break through critical resistance levels soon. Achieving this could signal a market reversal, whereas failing to do so might confirm a bearish divergence, resulting in increased downward pressure in the upcoming weeks.
Long-Term Versus Short-Term Trends
According to Josh from Crypto World, a well-known cryptocurrency analyst, a confirmed breakout above the long-standing resistance line is essential for a long-term bullish trend. This resistance has been a significant barrier for Bitcoin’s price over the past six months and currently sits just below the $68,000 mark. Until Bitcoin successfully breaches this resistance, any upward moves may be short-lived trends within a broader bearish market.
Bulls Vs Bears: Who Will Win?
At present, Bitcoin is grappling with resistance between $64,100 and $64,500. Surpassing this range could set the stage for tackling the next major resistance around $67,000 to $68,000, which is the final obstacle before aiming for new all-time highs. On the flip side, there is support around $63,000, with stronger support levels between $60,000 and $61,000 if a pullback occurs.
The hidden bearish divergence adds another layer of complexity to the situation. This pattern occurs when the price forms lower highs, while the Relative Strength Index (RSI) shows higher highs. Although a red candle has appeared on the chart, confirming the divergence, it remains too early to determine if it will lead to a larger downtrend.
Bitcoin Price Prediction: What’s Next?
The upcoming days are crucial for Bitcoin. If it manages to break above the $64,500 resistance soon, the bearish divergence might be invalidated. Conversely, if the price fails to move past this resistance within a week, the bearish divergence could strengthen, possibly leading to a short-term downward trend.
The analyst also pointed out that Bitcoin’s liquidation heat map shows liquidity around $62,200. While there is more liquidity on the downside, some liquidity is also building on the upside, starting around $64,800 and extending up to $65,400. This suggests that Bitcoin might encounter resistance as it attempts to move higher.
He further indicated that we might witness a minor drop toward $62,200 in the next day or two to clear this liquidity. Post this drop, there remains a possibility for Bitcoin to continue its short-term bullish trend.
