Bitcoin is currently trading within a descending broadening wedge pattern, indicating potential bearish momentum. However, recent oversold signals suggest a possible short-term shift in the market. Analyst Josh from Crypto World predicts larger volatility ahead, which could impact support and resistance levels as the new trading week begins.
Key Levels to Watch: Resistance and Support Zones
The Supertrend indicator remains in the red, signaling ongoing bearish sentiment. Bitcoin will need to break above a significant resistance level between $67,000 and $68,000 to reverse the broader bearish trend. Short-term support has been holding strong in the $60,000- $61,000 range, with resistance expected at $63,000 and $64,200. Stronger resistance lies near the $67,000-$68,000 range, which must be breached for bullish momentum to prevail.
Weekend Volatility and Key Liquidity Levels
Weekend volatility for Bitcoin is expected to be relatively stable, with minor bullish relief possible. If there is an upswing, key liquidity zones at $62,700, $63,400, and $64,200 could act as resistance levels. Conversely, a drop in price could test support near the $60,000 mark, a scenario more likely to occur during the week when trading volume picks up.
DXY Influence and Weekend Outlook
A recent bullish spike in the DXY (U.S. Dollar Index) has exerted bearish pressure on Bitcoin and the wider crypto market. While the DXY typically does not trade over weekends, low volatility and trading volumes during this time can lead to more stable price action for Bitcoin.
RSI Reset and Trend Continuation
The RSI indicator has reset to a neutral level, giving Bitcoin more room for downward movement. This reset could result in further bearish trends following short-term consolidation or mild bullish relief. With potential volatility on the horizon, the upcoming week will be crucial for determining the direction of Bitcoin’s price movement.