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The price drops below $65,000, can the bearish trend reverse today?
The current state of the cryptocurrency market, especially Bitcoin and Ethereum, consistently refuses to provide a clear indication of “what comes next?” Crypto World Analyst Josh said there is a major warning signal flashing on the Bitcoin chart as the price is facing rejection from a critical resistance area.
Looking at the chart, the analyst notices that not much has changed in the last day. A key observation is the bullish movement of the DXY (US dollar index), which is setting new highs in its short-term trend. This bullish trend in DXY is a bearish signal for Bitcoin and cryptocurrencies, as historically, a rising DXY correlates with falling Bitcoin prices.
The analyst explains that while we may still be in a broader bull market for longer periods of time, in the short term the trend for Bitcoin is bearish. This bearish trend is expected to continue as long as the DXY remains bullish. For the short-term trend to turn bullish, a bearish reversal in the DXY is needed, which has not happened yet.
What is the future of Bitcoin?
Analyze the newspaper Bitcoin On the chart, the analyst observes a rejection from the resistance area between $67,000 and $68,000, with a pullback occurring when the price approaches this level. This suggests significant selling pressure at this resistance zone. The analyst advises not to be overly bullish until there is a confirmed breakout above $68,000. Key support levels to watch are between $63,000 and $64,000. If Bitcoin were to fall below $63,000, it could fall further to previous lows of around $60,000, $58,000 and $56,000.
Despite these short-term bearish trends, the analyst notes that as long as Bitcoin remains above the previous low between $56,000 and $58,000, the broader bull market may still be intact. The market may be in a massive sideways consolidation similar to past patterns.
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