Bulls Regain Momentum as Bitcoin Asks $58K – Is $68K Next?
The latest CPI inflation data released recently came in at 2.5% year-on-year – very close to expectations. Despite some analysts' predictions of 2.6%, the actual figure did not trigger any major market movements.
Moving on to Bitcoin's technical analysis, Crypto World analyst Josh said that while Bitcoin remains above support, it remains below key resistance levels. The larger bearish trend is still in place, but short-term bullish momentum is starting to build.
Important resistance and support levels:
Major support sits around $52,500, and resistance is near $68,000. In the 2-day time frame, Bitcoin continues to hover between these levels without any major changes. Bitcoin recently broke above the $56,000-$57,000 range and successfully tested this area.
Despite a brief rout below $56,000, Bitcoin closed on the daily chart, indicating that this zone is now acting as support. As long as Bitcoin remains above this level, the short-term trend remains bearish, although the long-term trend is still weak.
If Bitcoin holds above this support, the next resistance levels are around $59,500, $60,000-$61,000 and $64,500. If Bitcoin breaks below $56,000 and closes below this level on the daily chart, it could be a short-term bullish trend. If not, the market will be more depressed again.
Are the bears waiting for an opportunity?
A similar situation caused Bitcoin to pull back a bit before it recently recovered. For confirmation of this new bearish signal, we need to see two red candles. If this happens, it could mean a short break in the current bullish trend.
Bitcoin has recently cleared significant liquidity around $58,200, but there isn't much liquidity left to target right now. Additionally, many traders are still shorting the market as evidenced by negative financing rates. If Bitcoin continues to rise, this could trigger a short squeeze, forcing those traders back into the market.
