While the long-term outlook for Bitcoin and Ethereum remains bullish, driven by institutional interest and significant ETF inflows, the short-term presents volatility. The movement of Bitcoin by Mt. Gox and the launch of Ethereum ETFs could introduce temporary selling pressure. Analyst Josh of Crypto World has sounded the alarm and said that a bearish signal is now flashing on the Bitcoin chart. This warning comes amidst a backdrop of short-term bearish signals that have been influencing Bitcoin’s price movements.
Bitcoin Price Analysis
The Bitcoin price charts are presenting a mixed bag of signals. On the 4-day Bitcoin chart, there hasn’t been much change despite a short-term pullback. The daily chart shows a bounce back in the DXY (US Dollar Index), which typically signals bearish trends for Bitcoin if the DXY continues to rise.
Currently, Bitcoin is facing resistance in the $67,000 to $68,000 range, based on previous support and resistance levels and the volume profile indicator. A confirmed breakout above $68,300 with sustained candle closes could push Bitcoin towards its all-time high, between $72,000 and $74,000. However, short-term support exists around $63,000 to $64,000, a critical level to watch for any further rejections.
Bitcoin ETF Inflows: A Silver Lining?
Despite the bearish signals, there is a silver lining. On Monday, there was a massive net inflow into spot Bitcoin ETFs, amounting to nearly $485.9 million. This inflow represents significant buying pressure, which is positive for Bitcoin’s price. However, this is just one piece of the puzzle affecting Bitcoin’s price dynamics.
Liquidity Levels to Watch
Analyzing the Bitcoin liquidation heat map, several key liquidity levels stand out. The price of Bitcoin is likely to move towards these levels:
- Significant liquidity at $65,600 to $65,700, just below the current price.
- Additional liquidity around $63,000, providing major support.
- Resistance liquidity at approximately $68,200, marking a crucial level for potential upward movement.
