According to analyst Josh of Crypto World, Bitcoin is currently facing significant resistance and is showing signs of a short-term cool-off from overbought conditions. This cooling off may result in more liquidations soon. The short-term outlook for Bitcoin suggests a period of price consolidation or a potential bearish move if key support levels fail to hold.
Bitcoin is now rejecting from a critical resistance line, sitting near $67,000 to $68,000. This level has been a major resistance point for the past six months, as Bitcoin repeatedly faces rejections here, continuing its broader bearish trend. Bitcoin has already broken below previous support levels around $64,000 and $63,000, and now it could lead to the next support levels at $61,900.
Short-Term Bullish Trends
While the long-term trend is bearish, shorter bullish trends have emerged that lasted a few weeks. Recently, Bitcoin saw a short-term bullish trend, but for it to evolve into a more long-term uptrend or bull run, Bitcoin must break above the key resistance level of $67,000–$68,000. Without this breakout, another rejection could lead to a further decline, continuing the long-term downtrend.
Potential for Rebound
A single rejection doesn’t necessarily mean an immediate large decline. For example, after a rejection in mid-May, Bitcoin had a brief pullback, followed by another attempt at breaking the resistance within a week. There’s still a possibility of a similar retest in the near future. However, for now, Bitcoin remains under this major line of resistance.
Support Levels and Bearish Possibilities
If Bitcoin fails to break the resistance, a decline toward support levels between $51,000 and $52,000 is possible. However, this would only occur if there’s sustained bearish momentum. Recent short-term rejections, like those in May, only led to minor corrections, suggesting that a full breakdown isn’t guaranteed.
