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.
Looking at the chart, the analyst notes that not much has changed over the last day. 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.
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