Bitcoin‘s price is encountering a crucial resistance zone, signaling a potential short-term decline, according to cryptocurrency analyst Josh. Despite a slight breakout from its recent downtrend, Bitcoin remains under pressure and may continue this negative trajectory for several weeks or months.
What is the Analyst Expecting?
In the past week, Bitcoin showed some signs of breaking out of its short-term downtrend. However, analyst Josh believes that without a confirmed reversal to an uptrend, BTC could continue to face declines. An upward trend in the US Dollar Index (DXY) is one of the factors influencing this bearish outlook.
Since nearing the $70,000 mark, Bitcoin’s price has predominantly indicated downward expectations. Josh warns that during this downtrend, intermittent upward jumps and periods of horizontal consolidation may occur, similar to pullbacks seen during uptrends. Investors should not be misled by these temporary movements.
Which Levels Should Investors Watch?
For the downtrend to be invalidated, Bitcoin needs a confirmed bullish signal, such as breaking above a key resistance level. Currently, BTC is struggling to breach the resistance area between $63,000 and $64,000. The significant selling pressure within this range results in horizontal price movement expected between $60,000 and $64,000 in the short term.
Key Takeaways for Investors
- A confirmed close below $60,000 could push BTC towards the $56,000-$58,000 support zone.
- Breaking above the $63,000-$64,000 resistance is essential for a bullish reversal.
- Expect horizontal movements between $60,000 and $64,000 unless a breakout occurs.
Josh emphasizes that Bitcoin will remain in a short-term downtrend unless it breaks above the critical resistance levels. Without confirmed bullish signals, the negative trend will persist.