Bitcoin
Pattern Reveals Continuation of Bloodbath as BTC Loses Important Support
Crypto World Analyst Josh took to his latest analysis and said that Bitcoin is currently facing rejection from a critical resistance area, triggering another test of a key support level. This pattern is also observed on Ethereum, which is rejecting an important Fibonacci level.
Recent Price Movements: On the 4-day chart of Bitcoin, the Super Trend indicator provides details on recent price movements. Although Bitcoin Price dipping below $56,000, the 4-day candle closed above this level. This close, for now, avoided a bearish reversal signal in this period.
The critical level to watch remains just below $56,000. If the next 4-day candle closes below this threshold, it would confirm a bearish reversal, turning the indicator from green to red. Historically, such reversals have marked the beginning of prolonged downtrends.
Bitcoin Daily Chart and Bullish Divergence
Current Price Action: Day to day Bitcoin chart, after a short-term bounce, the price is now retesting the support between $56,500 and $57,500. A confirmed bullish divergence on the daily timeframe suggests sideways consolidation or slight bullish relief in the near term.
Critical Support Levels: However, a confirmed daily candle close below $56,500 would invalidate this bullish divergence and signal further bearish action. It is crucial for Bitcoin to hold support above this level to avoid a prolonged decline. Earlier today, the price fell below $55,500. If the price breaks below the $56,000 support levels again, the analyst’s bearish prediction could come true.
Liquidation Heatmap: The analyst also noted that Bitcoin has released a lot of bullish liquidity over the past day. He mentioned that there was liquidity starting from just above $57,000 to around $57,500, which has been largely wiped out. There is still a large area of liquidity between $58,800 and $58,900, which is just below $59,000. He suggested that Bitcoin may soon reach close to $59,000 to clear this remaining liquidity.
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