The short-term trends look a bit shaky for the cryptocurrency market and the potential for a breather keeps lingering. After sailing in the red zone, Bitcoin has now drifted to the green zone, trading above the $61,500 levels.
Analyst’s Perspective on Price Range
Analyst Josh of Crypto World said that Bitcoin has been stuck in a huge sideways range lately, bouncing between roughly $73,000 and $56,000. Historically, such periods of calm often precede big price fireworks. So, brace yourselves—some serious action could be just around the corner.
Technical Analysis Insights
Zooming into the 3-day chart, the analyst noticed the Relative Strength Index (RSI) has been dipping below 50. In the past couple of years, whenever this happened, it often turned out to be a good time to buy Bitcoin, especially if you’re thinking long-term.
Now, looking at the daily chart, things get a bit bearish. The U.S. Dollar Index (DXY) has been flexing its muscles, and that usually means trouble for Bitcoin in the short term. But here’s a twist—the daily RSI recently hit oversold levels. That’s like a red light turning green for a brief pause in the downward slide.
Important levels to watch? Well, $60,000 to $61,000 is where Bitcoin seems to be finding its footing right now. Drop below $56,000, though, and things could get ugly. On the flip side, if Bitcoin can push past $63,000, $67,000, or even $72,000 to $74,000, the coin might see some serious fireworks again.
Observing key technical indicators, such as the Bollinger Bands and the Bollinger Bands Width, he noted that over the past day, these indicators have shown minimal change. This lack of movement suggests that no significant volatile shift has started yet, particularly on the broader timeframe where such moves historically range between 20% to 30% or more over several weeks.
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