Bitcoin recently pushed above $60,000, driven by key macroeconomic factors. Traders are excited about a breakout towards $70,000. The minutes from the Federal Reserve’s recent meeting suggested rate cuts are likely, which is expected to boost Bitcoin’s price as lower interest rates increase global liquidity.
Additionally, political developments, such as Donald Trump’s increased chances in the upcoming U.S. election, are seen as supportive for Bitcoin, especially if his administration is perceived as more crypto-friendly.
According to analyst Josh of Crypto World, there is a significant signal flashing on the Bitcoin chart, and Ethereum is hitting a critical support level.
Short-Term and Long-Term Trends
On shorter timeframes, the analyst said that Bitcoin has shown a short-term bullish trend, which contrasts with the broader bearish trend on longer timeframes. This short-term bullishness might be a temporary relief in an overall bearish environment. However, a new bearish divergence has just been confirmed on the 2-hour chart, hinting at a potential short-term pullback or sideways movement in the coming days.
Key Support and Resistance Levels
Josh said that Bitcoin has strong support between $56,000 and $57,000, with additional support around $51,000 to $53,000. These levels are crucial for maintaining the current price range. On the other hand, resistance levels are between $67,000 and $68.3k, which could pose challenges for further upward movement. While the DXY isn’t a perfect predictor, its current downturn suggests that we might see more bullish momentum for Bitcoin soon.
Bitcoin’s Liquidity Levels
Lastly, looking at the Bitcoin liquidation heat map, there’s still some liquidity to be taken out around the $61,000-$62,000 range. We might see the price move towards these levels in the next few days, especially after the short-term bearish divergence plays out.
