Bitcoin recently reached a major technical milestone, hitting a 26-month high of $49,974. According to Crypto World analyst Josh, this performance is consistent with short-term bearish signals that are currently unfolding. Josh also suggests that the current chart could indicate a new price target for Bitcoin as the price is facing significant resistance.
The resistance level between $48,000 and $50,000 has been rejected twice before, making it an important area for Bitcoin price action. This range corresponds to the golden pocket, a key Fibonacci level that represents significant resistance. Until Bitcoin is confirmed to close the weekly candle to move above $50,000, Josh believes the price may struggle in the short term.
Examining the daily Bitcoin charts, Josh notes that the Relative Strength Index (RSI) indicates overbought conditions, but momentum remains bullish, as evidenced by the Moving Average Convergence Divergence (MACD) indicator. However, he warns that a short-term correction is possible due to RSI overbought.
The analyst briefly reviews the Bitcoin liquidation heatmap covering the past week’s price movements. He said there was a noticeable concentration of liquidity in the $47,600 to $47,700 range. Additionally, another liquidity cluster was observed around $46,700, with additional support found around $44,200-$44,300. This level of support is important as it tends to drive price movements in Bitcoin. Conversely, liquidity for upside is relatively limited.
On the Ethereum side, Josh observes a potential near-term bearish signal as the daily RSI experiences rejection at a descending resistance line. Nonetheless, the daily MACD indicates overall bullish momentum, suggesting that a potential downside could lie within a broader bullish trend.
Moving on to Solana, Josh noted that recent price movements in Bitcoin and Ethereum are impacting Solana’s near-term performance. Solana had previously shown signs of a break above the resistance level, but a retest of this level is currently underway.