Josh, an analyst at Crypto World, commented on Bitcoin’s current state, noting that it is retesting a critical support area and displaying a short-term bullish divergence. He suggested that this could lead to more liquidations soon. Despite a meteoric rise, Bitcoin is struggling to break above the $70,000 mark.
Analyzing the 4-day Bitcoin chart, Josh pointed out that the Bollinger Bands are tightening, indicating a significant move could happen in the coming weeks, potentially ranging from 20% to 30%. However, the Bollinger Band Width Indicator is still moving sideways, suggesting that this major move has yet to begin. Bitcoin remains in a large sideways consolidation within a broader bullish trend, similar to patterns seen around mid-2023.
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On the 3-day chart, Bitcoin shows a possible inverse head and shoulders pattern, which could lead to a bullish price target of around $86,000 to $87,000. For this pattern to be confirmed, Bitcoin needs to move quickly towards the neckline at approximately $71,700 and close above $73,000 to $74,000 with a 3-day candle.
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The daily chart reveals Bitcoin retesting a critical area between $67,000 and $68,000, a zone with significant traded volume and resistance. To turn bullish in the short term, Bitcoin must break and stay above $68,000. Failure to do so could lead to continued resistance and potential short-term pullbacks.
If Bitcoin faces rejection from this resistance, there is crucial support between $63,000 and $64,000. The volume profile indicator shows a gap in traded volume from $66,000 to $64,000, indicating a quick move between these levels if $66,000 is breached.
Despite low volatility, the Bitcoin chart shows a short-term bullish divergence. This could lead to a slight bullish relief, targeting the liquidity area between $67,300 and $67,900. However, a confirmed breakout above $68,000 is necessary to end the current pullback and resume bullish momentum.
