Bitcoin is currently trading just above the key $58,000 level, surprising many with its sudden drop below $60,000. Analyst Josh from Crypto World noted that there’s a reversal signal appearing on Bitcoin’s chart. He explained that Bitcoin’s price is now testing an important support level after facing resistance.
Discussing the daily Bitcoin chart, Josh shared some good news and highlighted a significant recent change: a pullback and possible bearish trend reversal in the DXY. This shift could signal a bullish trend reversal for Bitcoin.
Bitcoin Price Update: Support Levels and Future Outlook
Bitcoin was recently testing key support levels between $60,000 and $61,000 after being rejected from resistance around $63,000 to $64,000. Currently, the price has dipped below $60,000.
In the midst of a short-term bearish trend, the analyst expects Bitcoin to move sideways within the current support and resistance range. He noted that if the price breaks below $60,000, it could further decline towards the next support zone between $56,000 and $58,000. If his predictions hold true, Bitcoin might next revisit the $56,000 level.
Analyzing Bitcoin’s Bearish Outlook and Path to Recovery
To shift from the current bearish outlook, the analyst emphasized the need for Bitcoin to confirm a breakout above resistance levels. This would require daily candle closes above key thresholds and supporting signals in the DXY. He referenced his previous analysis from about a month ago, which identified a warning signal in the DXY that preceded a potential bearish trend for Bitcoin.
The analyst also discussed Bitcoin’s recent price volatility, noting that it has been particularly pronounced during weekdays, unlike the historically lower volatility seen over weekends. He highlighted recent movements in the 4-hour Bitcoin RSI, which shifted from overbought to oversold conditions, and predicted a pullback similar to what has been observed over the past few days.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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