Right now, Bitcoin is retracing from a crucial resistance level, possibly repeating a retracement warning signal. In response to his most recent video, analyst Josh said that not much has changed since the previous day. According to him, these retracement patterns in Bitcoin can last for a few days, weeks, or even months. While there has been some respite from the short-term bearish trend for Bitcoin during the past week, no clear signs of a reversal to the bullish trend have been seen.
Josh claimed that because of the strong trend in the DXY during the past two weeks, he had turned negative on the short-term direction of Bitcoin. He has been transparent about this regularly ever since Bitcoin’s price approached $70,000. He further added that just like there can be pullbacks during a bullish trend, there can be small upward bounces and sideways consolidations during this bearish trend.
A verifiable positive reversal signal, such as a breakout above resistance, is needed to invalidate the negative trend. According to the analyst, Bitcoin is currently in a short-term bearish trend, and the current price action is just a slight pause in this trend.
Crucial price points to keep in mind:
He also stated that a verified break below $60,000 with a daily candle close would most likely result in a drop to the support level of $56,000 to $58,000.
So far, Bitcoin is retreating from the important resistance zone between $63,000 and $64,000, which the expert had previously issued a warning about. He saw strong resistance and selling pressure in this area, which predicted price problems. Soon, he expected price fluctuations to remain between $60,000 and $64,000.
Until evidence to the contrary is presented, the analyst reassured Bitcoin is still in a short-term bearish trend despite the sideways consolidation. He emphasized that verifiably positive reversal signals must reject the bearish trend.
The analyst looked at the Bitcoin liquidation heatmap before the close. He mentioned that the recent liquidity of $62,100 to $62,200 had been wiped out. The next key liquidity levels to monitor are approximately $61,000 and $64,000, with greater liquidity currently available around $61,000. This means that Bitcoin’s price may rise to the $61,000 liquidity level in the short term.
