Bloodbath confirmed, next step $56,000

Bitcoin price is currently trading slightly above the crucial $58,000 level, leaving everyone surprised by its sharp drop below the $60,000 mark. Crypto World analyst Josh said that at present, a reversal signal is appearing on the Bitcoin chart. Bitcoin price is currently retesting a critical support level after encountering resistance, he said.

Discussing the daily Bitcoin chart, he provided some good news and touched on a recent important change: a pullback and potential bearish trend reversal in the DXY, which could signal a bullish trend reversal for Bitcoin.

Bitcoin Price Levels and Support

New critical support test: Bitcoin recently retested crucial support levels between $60,000 and $61,000 after a recent rejection from resistance around $63,000 to $64,000. However, at present, the price has fallen below $60,000.

Short term outlook: Amid a short-term bearish trend, the analyst anticipated a potential sideways move within the current support-resistance range. He said that a break below $60,000 could signal a further decline towards the next support zone of $56,000-$58,000. If the analyst’s predictions are accurate, Bitcoin will then return to the $56,000 levels.

Confirmation conditions: To move away from this bearish outlook, the analyst explained the need for confirmation of a break above resistance levels through daily candle closes above key thresholds, coupled with corroborating signals in the DXY. He then referenced his previous analysis from about a month ago, noting a warning signal in the DXY that preceded a potential confirmation of the bearish trend for Bitcoin.

He also discussed the recent volatility in Bitcoin’s price, especially during the week, which contrasts with the historically lower volatility over the weekend. He noted the recent movements in the 4-hour Bitcoin RSI, which has moved from an overbought to an oversold zone, predicting a pullback like the one seen in recent days.