Is Bitcoin Price Repeating A Warning Signal? No Confirmation Of Push Beyond $70k
Anjali Belgaumkar3 Jul 20242 min read
Bitcoin is currently rejecting from a critical resistance area, potentially repeating a short-term warning signal. Analyst Josh took to his latest video and said that not much had changed in the last day. He said that these short-term trends for Bitcoin can last for several weeks or even a couple of months. In the past week, Bitcoin has experienced some relief from the short-term bearish trend, but no bullish trend reversal has been confirmed.
Josh asserted that he had been bearish on Bitcoin’s short-term trend for the past few weeks due to the bullish trend in the DXY. He has consistently opened up about this since Bitcoin’s price was closer to $70,000. During this bearish trend, he added that there could be small upward bounces and sideways consolidations, just as pullbacks can occur during a bullish trend.
To invalidate the bearish trend, a confirmed bullish reversal signal is needed, such as a breakout above resistance. For now, the analyst stated that Bitcoin remains in a short-term bearish trend, with the current price action being a temporary break from this trend.
Important Price Levels To Watch:
He added that a confirmed break below $60,000 with a daily candle close would likely lead to a move down to the support area between $56,000 and $58,000.
Currently, Bitcoin is rejecting from the critical resistance area of $63,000 to $64,000, which the analyst had previously warned about. He observed significant sell pressure and resistance in this range, leading to expected struggles for the price. He anticipated continued sideways price action within the range of $60,000 to $64,000 in the short term.
Despite the sideways consolidation, the analyst reassured that Bitcoin remains in a short-term bearish trend until proven otherwise. He stressed the need for confirmed bullish reversal signals to invalidate the bearish trend.
The analyst concluded with a look at the Bitcoin liquidation heatmap. He noted that recent liquidity around $62,100 to $62,200 had been wiped out. The next significant liquidity levels to watch are around $61,000 and $64,000, with more liquidity currently at $61,000. This suggests that Bitcoin’s price might move towards the $61,000 liquidity level in the short term.
