Bitcoin Price Prediction: Price Dips Below $65k, Can the Bearish Trend Flip Today?
Looking at the chart, the analyst notes that not much has changed over the last day. The current state of the cryptocurrency market, particularly Bitcoin and Ethereum, are constantly refusing to give a clear indication of ‘what’s next?’. Analyst Josh of Crypto World said that there is a major warning signal flashing on the Bitcoin chart as the price is facing rejection from a critical resistance area.
A key observation is the bullish movement in the DXY (US Dollar Index), which is setting new highs in its short-term trend. This bullish trend in the DXY is a bearish signal for Bitcoin and crypto, as historically, a rising DXY correlates with falling Bitcoin prices. The analyst explains that while we may still be in a larger bull market for longer time frames, the short-term trend for Bitcoin is bearish. This bearish trend is expected to continue as long as the DXY remains bullish. For the short-term trend to flip bullish, a bearish reversal in the DXY is necessary, which has not yet happened.
What’s Next for Bitcoin?
Analysing the daily Bitcoin chart, the analyst observes a rejection from the resistance area between $67,000 and $68,000, with a pullback occurring as the price approached this level. This suggests significant selling pressure in this resistance zone. The analyst advises against turning overly bullish until a confirmed breakout above $68,000 occurs. Key support levels to watch are between $63,000 and $64,000. If Bitcoin breaks below $63,000, it could drop further to previous lows around $60,000, $58,000, and $56,000.
Despite these short-term bearish trends, the analyst notes that as long as Bitcoin remains above the previous low of $56,000 to $58,000, the larger bull market could still be intact. The market may be in a massive sideways consolidation similar to past patterns.
