Analysts are raising alarms about Bitcoin’s current price action, noticing a significant bearish signal on the charts. As Bitcoin continues to pull back from overbought levels, it’s moving closer to oversold territory, raising concerns among traders.
According to analyst Josh of Crypto World, Bitcoin is once again facing rejection at a critical resistance line. This isn’t a new phenomenon; the cryptocurrency has encountered similar resistance multiple times over the past six months. For a more bullish outlook in the longer term, Bitcoin must break above the $67,000 to $68,000 range. Until that happens, the current sentiment remains bearish.
A significant factor contributing to this downturn is the recent spike in the U.S. Dollar Index (DXY). Historically, an uptick in the DXY has been a bearish signal for Bitcoin, and this pattern is reemerging. He said that in his previous analyses, warnings were issued about the DXY’s upward movement, and current trends are aligning with those predictions. As the DXY continues to rise, Bitcoin’s price action is increasingly conforming to bearish sentiment.
On the daily Bitcoin chart, the situation worsened after Bitcoin dropped below approximately $64,500, leading to the loss of critical support levels. The price has now descended towards a support range between $60,000 and $61,200. A further decline below this zone would signal a more pronounced bearish trend, likely extending over the coming weeks.
Immediate support below $60,000 includes minor levels around $59,500 and $58,000. However, the next significant support zone lies between $56,000 and $57,000. Should Bitcoin breach this level, it may face a more substantial drop toward the major support area between $51,000 and $53,000. The analyst said that breaking key levels or forming lower lows are bearish reversal signals, which have now been confirmed in the current price action.
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