The post Bitcoin Price Prediction: Pattern Reveals Continuation Of Bloodbath As BTC Loses Major Support appeared first on Coinpedia Fintech News
Analyst Josh of Crypto World took to his latest analysis and said that Bitcoin is currently facing rejection from a critical resistance area, prompting another test of a key support level. This pattern is also observed in Ethereum, which is rejecting an important Fibonacci level.
Recent Price Movements: On the 4-day Bitcoin chart, the Super Trend indicator provides details into recent price movements. Despite Bitcoin’s price dipping below $56,000, the 4-day candle closed above this level. This closure has, for now, avoided a bearish reversal signal on this timeframe.
The critical level to watch remains just under $56,000. If the next 4-day candle closes below this threshold, it would confirm a bearish reversal, flipping the indicator from green to red. Historically, such reversals have marked the beginning of prolonged bearish trends.
Daily Bitcoin Chart and Bullish Divergence
Current Price Action: On the daily Bitcoin chart, after a short-term bounce, the price is now retesting support between $56,500 and $57,500. A confirmed bullish divergence on the daily timeframe suggests either sideways consolidation or slight bullish relief in the short term.
Critical Support Levels: However, a confirmed daily candle close below $56,500 would invalidate this bullish divergence and signal further bearish action. It’s crucial for Bitcoin to maintain support above this level to avoid a prolonged downturn. Earlier today, the price dipped below $55,500. If the price once again loses $56k support levels, the analyst’s prediction of bearish trend might come true.
Liquidation Heat Map: The analyst also noted that over the past day, Bitcoin cleared a lot of upside liquidity. He mentioned that there was liquidity starting just above $57,000 up to around $57,500, which was mostly wiped out. There’s still a major area of liquidity between $58,800 and $58,900, just below $59,000. He suggested that Bitcoin might reach close to $59,000 soon to clear out this remaining liquidity.