Bitcoin is at a critical juncture, with analysts warning of potential liquidations as it tests key support levels. According to analyst Josh of Crypto World, the market is currently in a precarious position, with bearish indicators putting pressure on Bitcoin’s price.
When we look at the four-day Bitcoin chart, the Super Trend indicator remains in the red, signaling bearish momentum. This aligns with the overall trend observed over the past six months. On the two-day chart, Bitcoin is stuck within a descending broadening wedge pattern, indicating a longer-term bearish trend. To shift towards a bullish phase, Bitcoin needs to break above the resistance line at around $66,000, aiming for $67,000 to $68,000.
In terms of support and resistance levels, Bitcoin is currently testing crucial support between $60,200 and $61,200. If it drops below $60,000 with a daily candle close, the next support levels are at $59,500 and $58,000. Further downside could lead to levels of $56,000 to $57,000. If Bitcoin manages to bounce off the support, short-term resistance is expected around $63,000, with stronger resistance at $64,200 to $64,500. Breaking these levels would still face significant barriers at $67,000 to $68,000.
Recent market activity has seen liquidations between $61,300 and $61,700. Bitcoin is now approaching a liquidity zone just below $60,000, which could attract further price action. Continued bearish momentum coupled with a rising DXY could trigger more liquidations in the market.
As Bitcoin navigates through these challenging times, traders and investors need to closely monitor the support and resistance levels, as well as the liquidation heat map to gauge potential price movements. The market remains volatile, and caution is advised when making trading decisions.