Bitcoin price is currently trading slightly above the crucial $58k levels, leaving everybody surprised with its abrupt dip below the $60k mark. Analyst Josh of Crypto World said that at this moment, there’s a reversal signal appearing on the Bitcoin chart. Bitcoin’s price is currently retesting a critical support level after encountering resistance, he said.
Discussing the daily Bitcoin chart, he gave a good news and opened up about a significant recent change: a pullback and potential bearish trend reversal in the DXY, which could signal a bullish trend reversal for Bitcoin.
Bitcoin Price Levels and Support
Critical Support Retest: Bitcoin was recently retesting crucial support levels between $60,000 and $61,000 after a recent rejection from resistance around $63,000 to $64,000. However, as of now, the price has dipped below $60k.
Short-Term Outlook: Amidst a short-term bearish trend, the analyst anticipated a potential sideways movement within the current support-resistance range. He said that a break below $60,000 could signal further downside towards the next support zone from $56,000 to $58,000. If the analyst’s predictions are right, Bitcoin will next revisit the $56,000 levels.
Confirmation Requirements: To shift from this bearish outlook, the analyst explained the necessity of confirming a breakout above resistance levels through daily candle closes above key thresholds, coupled with corroborating signals in the DXY. He then referenced his earlier analysis from about a month ago, noting a warning signal in DXY that preceded potential bearish trend confirmation for Bitcoin.
He also discussed recent volatility in Bitcoin’s price, particularly during weekdays, contrasting with historically lower volatility over weekends. He noted recent movements in the 4-hour Bitcoin RSI, which had moved from overbought to oversold territories, predicting a pullback as seen over the past few days.
