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

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

Currently, a major hidden warning sign is emerging on the Bitcoin chart, indicating potential challenges ahead. According to analyst Josh from Crypto World, although the price appears to be strong in the short-term, there is a hidden bearish divergence that could signal a continuation of the larger downtrend.

The major signal emerging on the daily Bitcoin chart is a “hidden bearish divergence.” This occurs when Bitcoin price is showing lower highs while the RSI is reflecting higher highs. Typically, a bearish divergence is a sign that the market may continue its downtrend. However, in this case, the signal has yet to be fully confirmed. Here is a detailed breakdown of its analysis:

Key Resistance and Support Levels to Watch

Bitcoin is currently facing resistance at around $64,500. If this level is broken in the next few days, the short-term uptrend may continue. However, if the price struggles to break it, we may see a continuation of the downtrend.

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

Another crucial factor affecting Bitcoin, Ethereum, and Solana at the moment is that they are all showing short-term overbought signals. 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 way for another bullish push.

What’s next for Bitcoin?

We are currently in a short-term uptrend, but that could change quickly. If Bitcoin can break the $64,500 resistance level, it will have room to push towards $79,000, which is an important resistance level based on previous market action. On the other hand, a 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 the breakout or a continuation of the downtrend.