Bitcoin is currently facing a major hidden warning signal on its chart, indicating potential challenges ahead. Analyst Josh of Crypto World has pointed out a hidden bearish divergence in the price action, suggesting a continuation of the larger bearish trend despite short-term strength.
The daily Bitcoin chart is showing a significant flashing signal of a hidden bearish divergence. This occurs when Bitcoin’s price forms lower highs while the Relative Strength Index (RSI) reflects higher highs. Traditionally, a bearish divergence signals a potential downward trend in the market. However, the signal has not been fully confirmed at this point. Here is a detailed breakdown of the analysis:
Key Resistance and Support Levels to Watch
Bitcoin is currently encountering resistance around $64,500. If the price manages to break through this level in the coming days, the short-term bullish trend could persist. Conversely, if there is difficulty in surpassing this resistance, a continuation of the bearish trend could be in store.
On the downside, support levels are identified around $63,000, with further support between $60,200 and $61,200. These levels are crucial to monitor for any potential price breakdown.
Additionally, Bitcoin, Ethereum, and Solana are all exhibiting overbought signals in the short term. An overbought market indicates limited room for further price growth unless there is a reset. A short-term pullback or sideways movement may be necessary to reset the RSI and create space for another upward momentum.
What’s Next for Bitcoin?
Currently, Bitcoin is in a short-term bullish trend, but this could change rapidly. A breakthrough of the $64,500 resistance level could propel Bitcoin towards $79,000, a significant resistance level based on historical market data. Conversely, a failure to breach resistance could result in a return to the bearish trend. It is essential to keep a close eye on the market in the next few days for confirmation of either a breakout or a continuation of the bearish trend.