Bitcoin
Will the bulls confirm their presence and break above $68K soon?
Bitcoin Price recently triggered the liquidation of $1 billion in short positions and is bouncing back from a crucial support level. According to Crypto World analyst Josh, price remains in a substantial sideways consolidation within a larger uptrend or bull market.
A more bearish trend on higher time frames would only be confirmed if there was a confirmed break below $56,000, which has not happened yet. This means that we are still within a larger uptrend or bull market. A similar period of sideways consolidation occurred about a year ago, where the price held above the previous significant low, formed a slightly higher low, and continued the bull market in the following months.
The technical aspects seem mixed:
For the larger uptrend to continue, the price needs to hold above $56,000 for the next few months. If that happens, the larger bull market will likely persist.
On the 3-day chart of Bitcoin, the RSI is still below 50, historically indicating good buying opportunities for Bitcoin in the long term. The 3-day chart shows one to two green candlestick closes, which could confirm a hidden bullish divergence with higher lows in the price and lower lows in the RSI.
Day to day Bitcoin From the chart, the DXY (US Dollar Index) is still in an uptrend, which is generally bearish for Bitcoin. A bearish reversal in the DXY, confirmed by lower lows or lower highs, would provide further support for an uptrend in Bitcoin.
Important price levels:
Despite this, the price has bounced off the support zone between $60,000 and $61,000 several times over the past week. Even if the price falls below $60,000, there is support between $55,000 and $58,000.
For a confirmed bullish trend reversal in Bitcoin, a breakout above resistance levels around $63,000 to $64,000 and ideally a bearish reversal on the DXY is needed. If the price breaks above $64,000 and holds, it could indicate a stronger bullish trend. More confidence in a bullish continuation would come from a breakout above $68,000.
Read too: What’s next for Ethereum now that Bitcoin has made a bullish statement?