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Bitcoin is currently showing a strong bullish signal as its price breaks through key resistance levels in the short term. This breakout has resulted in a significant short squeeze, where various short positions have been liquidated, driving the price even higher.
According to analyst Josh of Crypto World, on the daily Bitcoin chart, a noticeable decline in the U.S. Dollar Index (DXY) was observed. The DXY crashing is generally bullish for Bitcoin and the broader crypto market, as they tend to rise when the dollar weakens. The analyst points out that this bearish trend in the DXY has been a strong bullish indicator for Bitcoin, and recent price movements have confirmed this.
The price action is still within a large descending broadening wedge pattern. The resistance line for this pattern is at approximately $68,500, while the support line is around $53,000. As long as Bitcoin’s price remains below this resistance, with lower highs being formed, the trend technically remains bearish.
However, if Bitcoin manages to break above the $68,500 to $69,000 range and closes above it on the daily chart, it would signal a bullish shift, potentially targeting the $80,000 range.
Bitcoin’s Recent Price Movements and Resistance Levels
In the short term, Bitcoin has broken out above key resistance levels, which are now acting as support. Specifically, the resistance between $60,000 and $61,000, and the resistance at around $62,800 to $62,900, have been surpassed. These levels should now serve as support. If Bitcoin fails to hold above $62,800, the next support level would be at $60,000 to $61,000.
On the upside, the next resistance level to watch is around $64,500. If Bitcoin breaks through this level, the next major resistance is between $67,000 and $68,300, which coincides with the descending resistance line at $68,500.