Bitcoin Price Prediction: Top Analyst Issues Red Flag; Bears Eye $53k Levels

The post Bitcoin Price Prediction: Top Analyst Issues Red Flag; Bears Eye $53k Levels appeared first on Coinpedia Fintech News

An analyst has raised a red flag for Bitcoin, pointing out a significant warning sign on the charts. Currently, Bitcoin’s price is showing a short-term bullish divergence, but there’s also a build-up of liquidity on the upside, which needs careful monitoring. Recently, Bitcoin broke below a key support area, which now acts as resistance. This area is between $60,000 and $61,000, and Bitcoin has already experienced some rejection from this zone. 

Analyst Josh of Crypto World said that on the 2-day chart, he can see this bearish trend even more clearly. Bitcoin has been forming lower highs and lower lows—classic signs of a downtrend. 

However, it’s important to note that within this overall bearish environment, there are occasional short-term upward movements. These brief rallies are part of the natural ebb and flow of the market, but they don’t necessarily hint at a reversal of the bearish trend.

Support: The key support line in the current bearish trend lies around $53,000. If Bitcoin’s price drops, this is a crucial level to watch.

Resistance: On the flip side, resistance is around $68,000. If the price moves up, it may struggle to break through this level.

As Bitcoin approaches higher liquidity levels, resistance could slow down any upward movement. Larger trends take longer to develop and reverse, providing a more consistent view of the market’s direction. Bitcoin will need to overcome multiple resistance levels along the way, which could slow down or even halt its progress.

Looking at the Bitcoin liquidation heat map, we can see some significant liquidity levels starting to build up on the upside. This liquidity is concentrated around $62,500 and $63,000, marking potential targets for Bitcoin if it manages to break through the current resistance levels.