Bitcoin is at a critical juncture with warning signs flashing on its chart. As Bitcoin attempts to retest key support levels, it could face liquidation. According to , the Bitcoin market is currently in a volatile state, with key support levels holding but facing pressure from bearish indicators.

Bitcoin Chart Overview

Four-day analysis

Looking at Bitcoin’s four-day chart, the Super Trend Indicator remains red, indicating bearish momentum. This is consistent with the broader trend we have observed over the past six months.

Two-day trend

On the two-day chart, Bitcoin is trapped in a descending expanding wedge pattern, which indicates a long-term bearish trend. To turn this trend into a bullish phase, Bitcoin needs to break through the resistance line around $66,000 and ideally reach $67,000 to $68,000.

Support and resistance levels

Currently, Bitcoin is retesting the important support level between $60,200 and $61,200. If Bitcoin falls below $60,000 on a daily close, the next support levels are $59,500 and $58,000. Further declines could push Bitcoin to $56,000 to $57,000.

If Bitcoin rebounds from the current support, short-term resistance is expected to be around $63,000, with greater resistance at $64,200 to $64,500. Even if Bitcoin breaks through this resistance, we will still encounter strong resistance at $67,000 to $68,000.

Liquidation Heat Map

Recent market activity has seen positions between $61,300 and $61,700 being liquidated. Currently, Bitcoin is approaching an important liquidity area just below $60,000, which could be a target for further price action. If we see continued bearish momentum coupled with an uptick in DXY, this could lead to more liquidations.