Renowned crypto analyst Josh highlighted significant developments in Bitcoin’s short-term outlook in a recent YouTube video. The analyst highlighted that Bitcoin has witnessed significant fluctuations, with hundreds of millions of dollars worth of trades being liquidated within the past 24 hours.
Josh’s analysis of the four-day Bitcoin chart shows the SuperTrend indicator flashing red, indicating an unbroken bearish trend. This sentiment is echoed in the two-day chart, where Bitcoin continues to form lower highs and lower lows. With support around $53,500 and resistance near $68,500, Bitcoin appears to be in a descending wedge pattern, signaling potential continued downward pressure.
According to the analyst, on the daily chart, Bitcoin trades within a range bounded by support at $56,000 to $57,000 and resistance at $60,000 to $61,000. A recent bounce from support was met with rejection at the resistance zone. If Bitcoin can break above $61,000, the next resistance levels to watch are near $63,000, $64,500, and the higher range of $67,000 to $68,300.
However, a break below $56,000 could lead Bitcoin to test the critical support zone between $51,000 and $53,000. These levels are crucial for traders to monitor, as they would likely command Bitcoin’s short-term direction.
Bitcoin Faces Contrasting Forecasts: Will Altcoins Outperform?In the shorter time frames, the analyst highlighted a recent bullish divergence on the two-hour chart that played out over the past few days. Despite this, Bitcoin has since experienced a pullback. According to Josh, divergences on smaller time frames, like the two-hour chart, usually only impact the market for a few days rather than setting the tone for long-term trends.
Josh also reviewed Bitcoin’s liquidation heat map, noting that a significant liquidity zone of around $60,000 was cleared out in the past day. Despite this, additional liquidity clusters remain at $61,000 to $62,000, which could act as targets for short-term price moves if bullish momentum builds.
While Bitcoin is still within a long-term bearish trend, traders are advised to remain vigilant in anticipation of both bullish and bearish signals. Analysis of different time frames and levels would be crucial for the individuals willing to trade Bitcoins focused on its short-term fluctuations.
