Bitcoin Price Analysis: Hidden Threat Signals Pullback; Will Bitcoin Drop Below $60K Again?

The post Bitcoin Price Analysis: Hidden Threat Signals Pullback; Will Bitcoin Drop Below $60K Again? appeared first on Coinpedia Fintech News

A major hidden warning sign is currently appearing on Bitcoin’s chart, signaling potential challenges ahead. According to Crypto World analyst Josh, despite the price appearing strong in the short term, there is a hidden bearish divergence that could suggest a continuation of the larger downtrend.

The big flashing signal on Bitcoin’s daily chart is a “hidden bearish divergence.” This happens when the Bitcoin price is making lower highs while the RSI (Relative Strength Index) is making higher highs. Typically, a bearish divergence is a sign that the market may continue its downward trend. However, in this case, the signal has not yet been fully confirmed. Here is a detailed breakdown of its analysis:

Key resistance and support levels to watch

Bitcoin is currently facing resistance around $64,500. If it breaks this level in the coming days, the short-term uptrend could continue. However, if the price struggles to move higher, we could see a continuation of the downtrend.

On the downside, support can be found around $63,000 and then lower between $60,200 and $61,200. These are critical levels to watch for any potential price breakout.

Another crucial factor affecting Bitcoin, Ethereum, and Solana right now is that they are all showing signs of being overbought in the short term. When a market is overbought, it means there is limited room for price growth unless there is a reset. A short-term pullback or sideways movement could help “reset” the RSI and make room for another upward push.

What's next for Bitcoin?

We are currently in a short-term uptrend, but that could change quickly. If Bitcoin manages to break the $64,500 resistance, it has room to move towards $79,000, which is a significant resistance level based on past market action. On the other hand, failure to break the resistance could lead to a return to the downtrend. In the coming days, the key will be to watch for confirmation of a breakout or continuation of the downtrend.$BTC

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