Key Points
- Bitcoin faces billion-dollar-long liquidations below $62k
- Analyst suggests potential bounce or sideways consolidation
- Resistance levels critical for a bullish trend reversal
- Positive Bitcoin ETF flows signal potential bullish sentiment
Bitcoin’s Short-Term Outlook Amid Liquidations and Support Levels
Beneath the $62,000 mark, bitcoin has been under pressure in the recent past, facing billion-dollar extended liquidations. The question that arises among investors is if this means the digital currency is bottoming out or continuing its short-term bearishness. To throw some light on this matter Josh from Crypto World has analyzed several BTC charts.
CRYPTO BREAKING NEWS
Bitcoin Inflows Paint Rosy Picture Amid Price Targets Of $56,000 and $58,000. The post Bitcoin Inflows Paint Rosy Picture Amid Price Targets Of $56,000 and $58,000 appeared first on Coinpedia Fintech News Is Bitcoin bottoming out after the latest dump, or… pic.twitter.com/ltmTe3zNI0— InnovatekMobile (@Neome_com) June 27, 2024
Support and Resistance Levels Crucial For Bitcoin
The daily chart of Bitcoin indicates that there has been a short-term rebound from an area of support between $60,000 – $61,000 which was recently tested as a local low. The following are the next key support levels projected at: $56,500 – $58,000 if it breaks below the level of 60000 dollars.
For the first time in many months, the daily RSI (Relative Strength Index) for bitcoin has entered oversold territory. This suggests historically that it is either very close to or already at a local low since prices tend to bounce back strongly after reaching such levels indicating possible bounces ahead or sideways consolidations over the next few days.
Josh says that relief from this bearish trend might involve a reduction in bearish price action/momentum leading to choppiness with respect to sideways movement but also potentially bullish bounces – so watch out! Possible resistance points are situated around 63-64k USDT (where we find current weekly supply structure highs), as well as 67-68k USDT, and then finally a huge one located between 72-74k USDT (where bears defended previously during the last bullish run).
To become more short-term bullish Josh wants to see prices break above significant resistance levels such as $64,000 ideally coupled with a bearish trend reversal on DXY (U.S. Dollar Index). Without these signals we expect the market will remain in short-term bearishness however some relief from this is anticipated over the next few days/week.
Positive flows and market sentiment
Furthermore, the analyst highlights recent changes within Bitcoin ETF flows which implies a positive outlook. After several weeks of almost constant net outflows, there was a net inflow on Tuesday worth around 31 million dollars. Although relatively small compared to continuous outflows seen earlier still it shows that at least some investors are willing to invest back into bitcoin through ETFs which can be considered bullish for price.
In summary, though bitcoin currently has got many liquidations ahead and resistance levels to cross through the oversold RSI plus positive ETFs flow points towards possible sideways consolidation or even bounce back up in the future. Please keep an eye on key resistances and other market signals so as to get a clear direction for your investment strategy.
