Bitcoin is currently showing a strong bullish signal as the price breaks through key short-term resistance levels. This breakout has resulted in a significant short squeeze, with several short positions being liquidated, driving the price even higher.
According to analyst Josh from Crypto World, a notable drop in the US Dollar Index (DXY) was observed on the daily Bitcoin chart. The DXY crash is generally bullish for Bitcoin and the broader crypto market, as they tend to rise when the dollar weakens. The analyst points out that this bearish trend in the DXY is a strong bullish indicator for Bitcoin, and recent price movements have confirmed this.
The price action is still within a large descending, widening wedge pattern. The resistance line for this pattern is around $68,500, while the support line is around $53,000. As long as the price of Bitcoin remains below this resistance, with lower highs forming, the trend remains technically bearish.
However, if Bitcoin breaks through the $68,500 to $69,000 range and closes above it on the daily chart, it would signal a bullish shift, with a possible target range of $80,000.
Recent Bitcoin Price Movements and Resistance Levels
In the short term, Bitcoin has broken above key resistance levels, which are now acting as support. Specifically, the resistance between $60,000 and $61,000 and the resistance around $62,800 to $62,900 have been surpassed. These levels should now act as support. If Bitcoin fails to sustain above $62,800, the next support level would be $60,000 to $61,000.
On the upside, the next resistance level to watch is around $64,500. If Bitcoin breaks this level, the next major resistance lies between $67,000 and $68,300, which coincides with the descending resistance line at $68,500.
