Bitcoin is currently in a consolidation phase within a sideways price range. This kind of movement might be repeating a historical pattern, where Bitcoin cools off on smaller time frames after reaching overbought territories. However, there’s no indication yet of a significant breakout.
According to analyst Josh of Crypto World, Bitcoin has been fluctuating sideways between key support and resistance levels. The support zone lies between $64.1K and $65K, while resistance is around $67K to $68K.
The volume profile and previous market behavior suggest that Bitcoin may stay in this range for a few more days, or even up to two weeks. The analyst points out that this sideways movement is typical when Bitcoin is in a bullish short-term trend but is facing resistance from larger time frames.
Major Resistance at $68K
The most crucial level to watch, according to the analyst, is the $68K resistance. Breaking through this would signal a strong shift from short-term bullishness to long-term positive momentum.
The last time Bitcoin traded in this range was back in July, where it moved sideways before either breaking upwards or downwards. He believes there’s a good chance Bitcoin could eventually break past this resistance level after a few failed attempts.
Bitcoin might continue to experience sideways or choppy price action. This is partly due to the overbought signal seen in the RSI (Relative Strength Index), which suggests that the market needs to cool off a bit before resuming upward momentum. Historically, these overbought signals have led to short-term slowdowns, not full trend reversals.
Upside Liquidation Levels
Currently, there is a buildup of liquidity on the upside, specifically between the $66.5K to $67K range. This liquidity shows a potential area where short positions (bets that the price will go down) may get liquidated if the price moves upwards.
The analyst warns that this could lead to a quick upward price spike once Bitcoin consolidates further. However, it is important to remember that the major resistance zone remains between $67K and $68K, which could make it difficult for the price to break through unless there is significant buying pressure.
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