Bitcoin Price Prediction: Crucial Indicator in Red Signals Potential Drop to $60,000
Anjali Belgaumkar22 Oct 20242 min read
Bitcoin is currently poised for a retest after recently breaking out, signaling a potential turning point, according to analyst Josh of Crypto World. The recent breakout shows major market movement, but the immediate focus is on whether Bitcoin can hold above key support levels. Currently, the price is testing the breakout area, which is crucial for sustaining upward momentum.
On the 4-day Bitcoin chart, the Super Trend indicator is still in the red. However, the 3-day chart has flipped back into the green with a confirmed bullish signal. This divergence between the two time frames hints at possible volatility ahead, with the 4-day chart offering a more reliable indicator based on past performance. For a bullish confirmation on the 4-day chart, Bitcoin needs to close above approximately $71,600. If this happens, it could validate a longer-term upward trend.
Key Price Levels to Watch
The immediate focus is on maintaining support in the $65,000 to $66,000 range. If Bitcoin can hold above this level, it might help confirm the bullish trend. However, if we see daily or two-day candle closes below this range, it could suggest a possible retracement towards the lower $60,000s, influencing bitcoin price predictions in the near future.
- Critical Support: $65,000 – $66,000
- Potential Resistance: $68,300
Bearish Divergence in Play
The latest price action has revealed a bearish divergence, characterized by higher highs in price but lower highs in the RSI. This pattern often precedes a short-term pullback. It is important to be vigilant as we approach critical support levels, especially the $66,000 mark.
Liquidation Heat Map
Recent liquidations have cleared some upside liquidity above $69,000, suggesting that the market is now targeting potential support levels below this range. The next important liquidity level appears to be around $66,500, followed by $64,700.
