The next couple of days will be crucial in determining Bitcoin’s short-term future. While there’s a chance of continuing the short-term bullish trend, the current momentum is lacking. According to analyst Josh of Crypto, Bitcoin is facing rejection at a significant resistance area. Here’s an in-depth look at his analysis:
Key Bitcoin Resistance and Support Levels
The SuperTrend indicator is still displaying red, indicating a bearish trend. Although there hasn’t been much change in the past day, the 2-day time frame reveals that Bitcoin remains in a larger bearish trend characterized by lower highs and lower lows. The next critical levels to monitor are:
- Resistance Level: Between $60,000 and $61,000.
- Support Level: A robust support area exists around $56,000 to $57,000.
If Bitcoin manages to break above the $61,000 resistance, we could see an increase to around $63,000. Conversely, if Bitcoin falls below $56,000, it may trigger a continuation of the bearish trend, further depressing the price.
Short-Term Pullbacks Expected
Recently, Bitcoin reached overbought levels, indicating that the price was too high in the short term. Consequently, a short-term pullback or sideways movement was anticipated, and that’s exactly what’s occurring now. However, as long as Bitcoin remains above the $56,000 to $57,000 range, there is potential for the short-term bullish trend to persist, despite the overarching bearish movement.
Outlook for the Next Few Days
In the immediate short term, Bitcoin is exhibiting a neutral trend. The price needs to rebound within the next 1 to 2 days to sustain the short-term bullish trend. If Bitcoin fails to recover soon, it risks further downward movement.
Major Liquidity Levels to Watch
The Bitcoin liquidation heat map reveals liquidity accumulating both to the upside and downside:
- Upside: Significant liquidity is found around $60,700 to $61,000. If Bitcoin rebounds, it could breach this level, potentially triggering a short squeeze (a rapid price rise).
- Downside: If Bitcoin fails to recover, there’s liquidity just above $57,000. Failure to hold this level could result in additional downward pressure, driving Bitcoin towards $55,000.
Keeping an eye on these key levels and understanding the current market sentiment will be essential for traders and investors in the coming days. As Bitcoin navigates through these critical points, the next few days will provide more clarity on its short-term direction.
