Analyst Josh from Crypto World has noted that Bitcoin is continuing its bearish trend, with the price now testing a critical support level. A new signal has also emerged for the broader crypto market.
The Bitcoin chart continues to show bearish signals as indicated by the SuperTrend indicator. Over the past day, the bearish trend has remained unchanged, with Bitcoin forming lower highs and lower lows. The current price action is developing within a descending, widening wedge pattern, with resistance around $68,500 and support around $53,500. Although the overall trend is bearish, occasional bullish moves are still possible.
The analyst also said that Bitcoin recently faced resistance at $63,000 and $60,000-$61,000 levels, leading to a drop towards the support area between $56,000 and $57,000. If Bitcoin closes below $56,000 on the daily chart, further support could be found around $51,000-$53,000, with potential minor support at $54,000.
A glimmer of hope?
He added that despite the ongoing bearish trend, certain indicators are showing neutral momentum, such as the RSI, and funding rates in the crypto market are turning negative. This negative funding rate could be a bullish signal, as it indicates high demand for short positions. If these short positions start to close, it could trigger a short squeeze, which could put upward pressure on the price of Bitcoin.
What do other analysts say?
Analyst Rekt Capital wrote on X: “Still successfully retesting the Channel bottom as support. Continued price stability here would be favorable for future trend continuation to the upside.”
The analyst pointed out that Bitcoin is currently facing resistance at the local highs of around $61,700. This level, which corresponds to the late-June wedge highs around $62,000, has returned as a major resistance point. On the other hand, support is provided by the early-July wedge highs around $58,280.
