Is Bitcoin bottoming out after the latest dump, or is the price going to continue its short-term bearish trend as this signal indicates? Analyst Josh of Crypto World examined various BTC charts and said that there hasn’t been much change in the last day.
Examining the daily Bitcoin chart, he said that the price is continuing a short-term bounce from the support area between $60,000 and $61,000, recently seen at the local low. If there is a confirmed break below $60,000, the next significant support area is between $56,500 and $58,000.
The daily Bitcoin RSI entered oversold territory for the first time in many months, which historically indicates that the price is either very close to or has already hit a local low. This suggests a potential bounce or sideways consolidation in the short term.
Relief from the bearish trend could involve reduced bearish price action or momentum, resulting in choppy sideways price action or a bullish bounce to the upside into areas of resistance around $63,000 to $64,000, and possibly $67,000 to $68,000, with a massive resistance between $72,000 and $74,000.
He would only become more bullish in the short term if there were breakouts above significant resistance levels like $64,000 and ideally $68,000, along with a bearish trend reversal in the DXY. Without these bullish reversal signals, the market remains in a short-term bearish trend. However, a bit of relief from this trend is expected in the expected short term, likely over the next few days to a week.
The analyst also discussed positive news and said that on Tuesday, there was a shift in Bitcoin ETF flows. After weeks of almost constant net outflows, there was finally a net inflow. Although it was a relatively small net inflow of about $31 million, it’s still better than outflows. If this trend of net inflows continues, it could be bullish for Bitcoin.
Read Also: Bitcoin Price Forecast: What to Expect in the Coming Months?
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