Now, a major hidden warning signal has appeared on the Bitcoin chart, signaling a potential challenge ahead. According to Crypto World analyst Josh, while the price looks strong in the short term, there is a hidden bearish divergence that could signal a continuation of a larger bearish trend.
A big flashing signal on the daily Bitcoin chart is a “hidden bearish divergence.” This occurs when the Bitcoin price makes a lower high while the RSI (relative strength index) reflects a higher high. Typically, a bearish divergence is a signal that the market may continue its downtrend. However, in this case, the signal has not yet been fully confirmed. Here is a detailed breakdown of his analysis:
Key resistance and support levels to watch
Bitcoin is currently facing resistance at $64,500. If it breaks this level in the coming days, the short-term bullish trend could continue. However, if the price struggles to break through, the bearish trend could continue.
On the downside, support can be found around $63,000, and then further down between $60,200 and $61,200. These are important levels to watch for a potential price breakdown.
Another important factor affecting Bitcoin, Ethereum, and Solana at the moment is that they are all showing signs of overbought in the short term. When the market is overbought, it means that there is limited room for price to rise unless there is a reset. A short pullback or sideways move could help “reset” the RSI and create room for another uptrend.
What does the future hold for Bitcoin?
Currently in a short-term bullish trend, but this could change quickly. If Bitcoin can break the $64,500 resistance, it could rise to $79,000, which is a significant resistance level based on past market movements. On the other hand, if it fails to break the resistance, the bearish trend could return. The key in the coming days is to watch for a breakout or confirmation of a continuation of the bearish trend.