Bitcoin’s price action is rebounding from oversold levels and this rebound suggests a potential short-term trend reversal, as Bitcoin’s price appears to be replicating historical patterns. Analyst Josh of Crypto World pointed out that these movements, combined with other signals, could impact the entire crypto market.
He said that the SuperTrend indicator remains in the green zone, with Bitcoin currently trading above the crucial $56,000 level—often considered the reversal threshold for the ongoing bullish trend. The analyst said that for a confirmed bearish reversal, a 4-day candle must close below this level.
Important Price Levels:
The next candle close, expected within the next day, will be crucial in determining the market’s direction. Should Bitcoin remain above $56,000, the bullish trend may continue. However, a close below this threshold could signal a more sustained bearish trend. Despite the potential for a bearish reversal, the analyst noted that the short-term trend remains bearish.
The analyst also drew attention to a descending broadening wedge pattern on the daily chart, with support around $54,000 and resistance between $68,000 and $69,000. While this pattern typically suggests a potential bullish breakout, confirmation would require a decisive move above the resistance level—a scenario that seems distant at the moment.
Furthermore, Bitcoin recently found support near $50,000, a key area the analyst considers critical. A break below this level could lead to a deeper correction, potentially down to the $41,000–$45,000 range. However, the analyst believes that the recent low around $49,000 could serve as a local bottom, at least in the short term.
Conclusion:
He expects Bitcoin to slightly bounce in the short term but predicts that this bounce will slow down within the next 1-2 days, possibly leading to a minor retracement. However, he doesn’t anticipate the price to drop below the recent low. Over the next few days or weeks, he foresees more bullish relief, possibly leading to a choppy sideways movement.