Another pull ahead; Is The Next Increase Taking Bitcoin To $68K?
Bitcoin is currently trading above $58,000 after a quick bounce back from the worrisome $56,000 level. The broader crypto market is showing mixed signals, which has everyone wondering what's next for the dominant cryptocurrency.
For Bitcoin to gain strong momentum, it must first recover the $60,000 mark and continue its journey towards $62,000. While reaching new all-time highs seems like a distant goal at the moment, there is still hope that the final quarter of the year could bring new optimism. As market sentiment picks up, the expected $100,000 rally is possible again.
Technical picture of Bitcoin
According to CryptoWorld analyst Josh, the supertrend indicator is still showing a bearish red signal. This shows that Bitcoin is still in a phase where lower highs and lower lows are being formed. The key support level is placed at $52,500, while the resistance is near $68,000.
One interesting event was the recent decline in the DXY (US Dollar Index), which hints at the possibility of a higher short-term move for Bitcoin. Historically, DXY and Bitcoin have often moved in opposite directions. While a fall in DXY is a bearish sign for the dollar, it usually favors Bitcoin in the short term.
Short term and long term trends
Despite the recent crackdown, Bitcoin still faces key resistance levels. Based on the volume profile, there is significant resistance around $59,500, $61,000 and $645,000. Although Bitcoin's short-term momentum is improving, passing these levels will be crucial for continued growth.
The 3-hour chart shows a bearish divergence in the RSI (Relative Strength Index), which could be slowed by Bitcoin's bullish momentum. Over the next day or so, this divergence could lead to some decisive sideways action or a slight pullback. Depression typically indicates a lack of bullish strength. In this case, it means that Bitcoin's short-term rally may soon lose steam.
