Bitcoin Price Analysis: Short-Term Warning Signal and Key Support and Resistance Levels
Bitcoin is currently facing a short-term warning signal as it tests critical support levels, with significant liquidations adding to the pressure. Analyst Josh of Crypto World has highlighted the decrease in net inflow to spot Bitcoin ETFs, indicating a potential slowdown in bullish momentum.
On Wednesday, the net inflow dropped to $53 million from earlier highs of $300 million and $422 million on Monday and Tuesday, respectively. This decline in ETF inflows is a cause for concern as it could impact Bitcoin’s price action in the near future.
Bitcoin is currently retesting support levels between $63,000 and $64,000, with resistance levels at $67,000 and $68,000. A newly confirmed bearish divergence suggests a possible pullback or sideways movement in the short term, although a bullish divergence on the daily chart indicates a temporary nature of any potential pullback.
Maintaining support above key levels is crucial for Bitcoin to avoid tapping into major liquidity areas, with new zones emerging around $61.9k to $62.1k and $59,000. A potential scenario could involve a quick drop to $62,000 before a rebound, driven by these liquidity levels.
Traders and investors are advised to closely monitor Bitcoin’s price action and ETF inflows in the coming days to gauge the direction of the market and potential trading opportunities.