Bitcoin Price Shows Warning Signal with No Confirmation of Surge Past $70k

Bitcoin is facing resistance at a crucial level, potentially signaling a short-term cautionary sign. Analyst Josh discussed in his recent video that there hasn’t been much change in the past day. He mentioned that these short-term patterns for Bitcoin could persist for weeks or even a couple of months. While Bitcoin saw some relief from the short-term bearish trend last week, there hasn’t been a confirmed reversal to a bullish trend.

Josh has been bearish on Bitcoin’s short-term trajectory for a few weeks due to the bullish trend in the DXY. This sentiment has been consistent since Bitcoin was trading near $70,000. He explained that during this bearish phase, there could be minor upward movements and sideways consolidations, similar to pullbacks in a bullish trend.

To negate the bearish trend, a clear bullish reversal signal, like breaking above resistance, is necessary. Currently, Josh pointed out that Bitcoin is still in a short-term bearish trend, with the current price movement seen as a temporary deviation from this trend.

Key Price Levels to Monitor:

Josh highlighted that a confirmed drop below $60,000 with a daily candle closure could potentially push the price down to the support zone between $56,000 and $58,000. Bitcoin is currently facing rejection from the critical resistance zone of $63,000 to $64,000, as previously cautioned by the analyst. The area is experiencing substantial selling pressure and resistance, leading to anticipated challenges for the price. He expects Bitcoin to continue trading sideways within the $60,000 to $64,000 range in the near term.

Despite the sideways trading, Josh emphasized that Bitcoin is still in a short-term bearish trend unless proven otherwise. He stressed the importance of confirmed bullish signals to invalidate the bearish outlook.

In closing, Josh examined the Bitcoin liquidation heatmap, noting the recent elimination of liquidity around $62,100 to $62,200. The next notable liquidity levels to observe are around $61,000 and $64,000, with more liquidity currently concentrated at $61,000. This indicates a potential movement of Bitcoin’s price towards the $61,000 liquidity level in the short run.