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Despite the dominance of bearish signals in the short and medium-term outlook of the cryptocurrency market, the possibility of Bitcoin breaking out to the upside, potentially reaching $70,000, remains a key question. Currently hovering around the $58,000 mark, there is concern about further downside testing. As traders and analysts anticipate the next upward move, here are some crucial levels and details to consider.
Support and Resistance Levels
According to analyst Josh of Crypto World, the support is near $525,000, while resistance is slightly above $68,000. Within this larger bearish trend, occasional upward movements or brief bullish reliefs are possible. However, the overall trajectory remains downward.
Short-Term Price Movements
The daily Bitcoin chart reveals that the past day’s price action has been relatively flat, showing no new developments. The price has been moving sideways, particularly in the US Dollar Index (DXY), which means there’s limited new information to consider.
Despite this sideways movement, the analyst observed that Bitcoin is nearing a support range between $56,000 and $57,000. If Bitcoin breaks below this level, it could drop to around $54,000. Further support exists between $51,000 and $53,000. On the upside, resistance is expected around $59,500, with additional resistance zones between $60,000 and $61,000.
Is Relief On The Horizon?
The Bitcoin chart shows the possible formation of a bullish divergence. While a previous bullish divergence was invalidated by a breakdown in the RSI, the recent price action has set the stage for a new bullish divergence. This divergence could signal a short-term relief in Bitcoin’s price, but it’s important to note that it hasn’t been confirmed yet.
For confirmation, the market needs to see one or two green candle closes on the four-hour or six-hour chart. If confirmed, this could lead to a brief upward movement, providing some respite in the otherwise bearish trend.