Bitcoin Price Prediction: $58K Support Lost with 4% Drop; Will BTC Retest $50K Levels?
Anjali Belgaumkar16 Sept 20242 min read
The next couple of days will be critical in understanding Bitcoin’s short-term future. While there’s a possibility of continuing the short-term bullish trend, there’s not much bullish momentum at the moment. According to analyst Josh of Crypto, Bitcoin is currently being rejected from a critical area of resistance. Here’s a breakdown of his analysis:
Key Bitcoin Resistance and Support Levels
The analyst said that the SuperTrend indicator is still showing red, hinting at a bearish (downward) trend. While there hasn’t been much change in the past day, the 2-day time frame shows Bitcoin is still stuck in a larger bearish trend, with lower highs and lower lows. The next levels to watch are:
- Resistance Level: Between $60,000 and $61,000.
- Support Level: A strong area of support remains around $56,000 to $57,000.
If Bitcoin manages to break above the $61,000 resistance, we could see a rise to around $63,000. On the downside, if Bitcoin falls below $56,000, it could lead to a continuation of the trend, further pushing the price down.
Short-Term Pullbacks Expected
Bitcoin recently hit overbought levels, signaling that the price was too high in the short term. As a result, a short-term pullback or sideways movement was expected, and that’s exactly what’s happening now. However, as long as Bitcoin remains above $56,000 to $57,000, it’s possible for a short-term bullish trend to continue, despite the larger bearish movement.
Outlook for the Next Few Days
In the immediate short term, Bitcoin is showing a neutral trend. The price needs to bounce back within the next 1 to 2 days to keep the short-term bullish trend alive. If Bitcoin fails to recover soon, it risks further downward movement.
Major Liquidity Levels to Watch
The Bitcoin liquidation heat map shows liquidity building both to the upside and downside:
- Upside: Significant liquidity sits around $60,700 to $61,000. If Bitcoin bounces back, there could be a chance to push through this level, potentially triggering a short squeeze (a rapid rise in price).
- Downside: If Bitcoin fails to recover, there’s liquidity just above $57,000. A failure to hold this level could lead to further downward pressure, pushing Bitcoin toward $55,000.
