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Bloodbath Confirmed, Next Stop $56,000
The price of Bitcoin is currently slightly above the crucial $58,000 mark, leaving everyone surprised by its sharp drop below the $60,000 mark. Analyst Josh from Crypto World He said that there is a reversal signal on the Bitcoin chart at the moment. The price of Bitcoin is currently retesting a critical support level after hitting resistance, he said.
Discussing the daily Bitcoin chart, gave some good news and talked about a recent significant change: a pullback and a potential bearish trend reversal in DXY, which could signal a bullish trend reversal for Bitcoin.
Bitcoin Price Levels and Support
New Critical Support Test: Bitcoin recently retested crucial support levels between $60,000 and $61,000 after a recent rejection from resistance between $63,000 and $64,000. However, the price has so far fallen below $60k.
Short-term outlook: Amid a short-term bearish trend, the analyst predicted a potential sideways move within the current support-resistance range. He said that a break below $60,000 could signal a further downside towards the next support zone of $56,000 to $58,000. If the analyst’s predictions are correct, Bitcoin will revisit the $56,000 levels.
Confirmation requirements: To move away from this bearish outlook, the analyst explained the need to confirm a breakout above resistance levels via daily candlestick closes above key thresholds, along with confirmation signals in the DXY. He then referred to his previous analysis from about a month ago, noting a warning signal in the DXY that preceded the potential confirmation of the bearish trend for Bitcoin.
He also discussed the recent volatility in Bitcoin’s price, particularly during weekdays, in contrast to the historically lower volatility during weekends. He noted the recent movements in Bitcoin’s 4-hour RSI, which had moved from overbought to oversold territory, predicting a pullback as seen in recent days.
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