Bitcoin is once again facing resistance at a critical level, yet it continues to find support on shorter timeframes, particularly the 2-hour chart. Despite significant liquidations in the market, Bitcoin has managed to hold above a key support level, preventing a major breakdown.
According to analyst Josh of Crypto World, the 4-day Bitcoin chart shows that the Super Trend indicator remains in the red, indicating a continuation of the bearish trend. This is in line with the 2-day chart, which also displays a bearish pattern characterized by lower highs and lower lows. However, the analyst points out that even within a bearish trend, Bitcoin can undergo temporary upward movements or sideways consolidations.
Currently, Bitcoin is forming a descending broadening wedge pattern. A breakout above the resistance level at around $58,500 could signal a potential bullish move, though confirmation is still pending. Until a breakout occurs, the market lacks a clear bullish price target.
In terms of important price levels, Bitcoin recently encountered resistance between $60,000 and $61,000 in the daily chart, which was previously a support area now turned resistance. To confirm a bullish breakout, Bitcoin must close above $61,000 on the daily chart. However, even if this milestone is achieved, further resistance is anticipated around $63,000 and between $67,000 and $68,300.
In the short term, Bitcoin’s price is range-bound between support around $56,000 to $57,000 and resistance between $60,000 and $61,000. A closure below $56,000 would lead to support levels at $54,000 and between $51,000 and $53,000.
Analyzing the Bitcoin liquidation heat map, liquidity is observed above $61,200, extending to $62,000. Recent liquidations of short positions near $60,000 to $60,500 resulted in a short squeeze, driving the price higher. While there is some downside liquidity around $57,500 to $57,700 and $55,800 to $56,000, the majority of short-term liquidity remains above the current price.
This insightful analysis provides a comprehensive overview of Bitcoin’s current price action and key levels to watch in the near term.
