Bitcoin is experiencing volatility due to a mix of market and macroeconomic factors. The coin fell from above $70,000 to below $60,000, triggered by massive liquidations of leveraged long positions and concerns that Bitcoin whales may be selling their holdings.
However, after weeks of trying to reclaim the $60,000 mark, BTC was finally successful and is now trading near the $61,000 mark. Recently, Bitcoin has shown a bearish divergence that resulted in a short-term decline. This pattern is expected to last for a day or two but usually does not last longer. The overall trend remains bearish, but there could be some short-term relief or upside if Bitcoin breaks the critical resistance levels.
Crypto World analyst Josh said that Bitcoin is approaching a critical resistance zone and the price is weakening at around $60,000-$61,000. Additional resistance levels are around $61,800 and $62,900. These levels are crucial as they could determine Bitcoin’s short-term price movement. He said that Bitcoin may continue to experience bearish divergence in the next few hours to a day but could move towards key liquidity levels at around $61,800-$62,000.
Support and resistance levels: The chart shows that Bitcoin is still in a bearish trend, with the price forming lower highs and lower lows, suggesting a continuation of the downward move unless there is a significant breakout.
If Bitcoin faces rejection, key support levels are expected at around $56,000-$57,000, with additional support at $54,000 and between $51,000-$53,000. Bitcoin is currently facing resistance, which could lead to short-term difficulties. A breakout above $63,000 could create further resistance at around $64,500, with major resistance between $67,000-$68,300. There could be a brief continuation of the bearish divergence, but a move towards $61,800-$62,000 is possible in the next few days.
