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The post <a href="https://coinpedia.org/news/bitcoin-price-prediction-warning-signals-point-to-potential-drop-to-60k-turning-resistance-into-support-is-crucial/" rel="noopener noreferrer nofollow">Bitcoin Price Prediction: Warning Signals Point to Potential Drop to $60K; Turning Resistance into Support is Crucial</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a>
<a href="https://www.youtube.com/watch?v=Qdl9a__9_PY" rel="noopener noreferrer nofollow">Analyst Josh of Crypto World</a> recently revealed that Bitcoin is currently facing rejection from a critical resistance level and is simultaneously flashing short-term warning signals. This hints that new liquidations could be on the edge. Here is a breakdown of his analysis:
Bitcoin’s Current Market Behavior
Starting with the four-day Bitcoin chart, there hasn’t been significant movement over the past day. Looking at the daily Bitcoin chart, we observe a period of sideways consolidation, with choppy price action reflecting the US Dollar Index (DXY). The DXY’s neutral position means it isn’t exerting much influence on Bitcoin’s price.&nbsp;
Historically, a bearish DXY signals bullish prospects for Bitcoin, while a bullish DXY tends to be bearish for Bitcoin. Currently, the DXY has not confirmed a bullish trend reversal and remains in a bearish trend, which is a positive sign for Bitcoin’s trend and momentum. However, it’s essential to note that short-term pullbacks can occur even within a bullish trend.
<h4 class="wp-block-heading" id="h-critical-resistance-levels">Critical Resistance Levels</h4>
At present, Bitcoin is experiencing a short-term rejection at the resistance zone between approximately $67,000 and $68,000. The upper limit of this resistance is just above $68,000, as shown by the volume profile showing substantial traded volume around these levels.&nbsp;
Should Bitcoin manage to break above this resistance with confirmed daily candle closes and potentially flip it into support, the next major resistance lies between $72,000 and $74,000. However, if Bitcoin faces further rejection from this resistance, major support is expected around $63,000 to $64,000.&nbsp;
A break below $63,000, especially dipping towards or below $60,000, would signal a bearish trend reversal. Another bearish indicator would be a bullish reversal in the DXY, which hasn’t occurred yet.
<h4 class="wp-block-heading" id="h-short-term-warning-signals">Short-Term Warning Signals</h4>
The daily Bitcoin chart reveals a confirmed bearish divergence on the six-hour chart, where higher highs in price are met with lower highs in the Relative Strength Index (RSI). A bearish divergence typically signals a loss of bullish momentum and can lead to sideways consolidation or a short-term pullback.

Bitcoin Price Prediction: Warning Signals Point to Potential Drop to $60K; Turning Resistance into Support is Crucial

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