Bitcoin remains bearish, struggling to break the $67,000-$68,000 resistance.
Key support is holding at $60,000-$61,000, with resistance at $63,000.
RSI reset signals potential downside, with volatility expected this week.
Bitcoin is currently moving within a descending broadening wedge pattern, which often signals bearish momentum. However, recent signals indicating the cryptocurrency has been oversold suggest the potential for a short-term shift.
Consequently, as the new trading week begins, the market is likely to experience heightened volatility, which could significantly impact key support and resistance levels.
Current Bearish Sentiment Persists
Notably, according to analyst Josh from Crypto World, Bitcoin's Supertrend indicator remains red, reflecting ongoing bearish sentiment. The bearish trend is expected to persist unless Bitcoin can break through the key resistance level around $67,000 to $68,000.
https://twitter.com/CryptoWorldJosh/status/1842616145024892994
Subsequently, Bitcoin would need to surpass this level and sustain its position above it for bullish momentum to take hold. Until then, the bearish outlook remains intact.
Over the past weekend, Bitcoin bounced back from a key support zone between $60,000 and $61,000. This zone has shown resilience, providing a temporary floor for the cryptocurrency.
However, if this support holds, Bitcoin could face short-term resistance around $63,000, followed by additional resistance at $64,200. Analysts are closely watching these levels as potential hurdles in Bitcoin's path to recovery.
Volatility Expected in the Coming Week
Interestingly, Bitcoin’s price action over the weekend has been relatively stable, with minor bullish relief. However, with trading volume expected to increase during the week, larger moves could take place.
Consequently, a potential upswing could lead Bitcoin to test resistance zones near $62,700, $63,400, and $64,200. In contrast, a drop might push Bitcoin toward the $60,000 liquidity level, which could be tested more aggressively when the week’s trading begins.
Additionally, the U.S. Dollar Index (DXY) has also contributed to the bearish pressure on Bitcoin. While the DXY typically does not trade over weekends, its recent bullish spike has negatively impacted the broader crypto market. As a result, Bitcoin is likely to face additional challenges as market participants react to the DXY’s strength.
Technical Indicators Signal Possible Downside
Besides, Bitcoin's Relative Strength Index (RSI) has reset to a neutral level, creating more room for potential downward movement. The reset in the RSI suggests that while short-term bullish relief may occur, the broader trend could remain bearish.
Consequently, Bitcoin may experience further consolidation or a slight bullish uptick before resuming its downward trajectory.
Therefore, traders and investors will be watching closely as Bitcoin navigates through these critical support and resistance levels. The upcoming week could be pivotal in determining whether Bitcoin can break through key resistance or continue its descent.
The post Bitcoin Price Set to Reach $68K After Prolonged Consolidation: What Lies Ahead? appeared first on Crypto News Land.
