Bitcoin Price Prediction: Bearish Reversal And $60k Retest on Cards
Anjali Belgaumkar24 Oct 20242 min read
As Bitcoin tests critical levels, there’s potential for a shift from bullish to bearish momentum. This level, which previously acted as resistance, is now expected to serve as support. If Bitcoin can maintain its position above this critical level—around $65,000 to $67,000—it could mean a continued bullish trend. However, a confirmed break below this threshold, especially with a candle close on the 2-day chart, would mean a bearish reversal and impact Bitcoin price prediction.
Analyst Josh of Crypto World said that in the daily chart, Bitcoin has slipped below a previous resistance range of approximately $66,800 to $68,300. The next major support area to watch is between $64,100 and $64,500. If Bitcoin fails to hold above this support, it could drop further to $63,000 or potentially down to the $60,000 to $61,000 range.
Effects of Breakout and Invalidation
Should Bitcoin break below the $65,000 mark, it would suggest that the recent breakout was a false move, or “fake-out,” lacking follow-through. This would invalidate the bullish breakout that occurred about a week ago, raising concerns among traders.
Bearish Divergence on Shorter Time Frames
The chart reveals an active bearish divergence that has started to manifest as a short-term pullback. This pattern often leads to price corrections. Interestingly, the RSI (Relative Strength Index) on is entering oversold territory, suggesting we may see a bounce or sideways action soon, potentially stabilizing the price.
Current Market Sentiment
Recent market dynamics hint at a long squeeze in play, contributing to bearish sentiment. This long liquidation has added sell pressure to Bitcoin’s price, aligning with the bearish trends observed in the charts.
Looking at the Bitcoin liquidation heat map, there is substantial liquidity building to the downside, particularly around $64,800 to $64,200. If Bitcoin breaks through these levels, we might see further liquidation events.
