Bitcoin
Bitcoin Inflows Paint a Bullish Picture Amid $56,000 and $58,000 Price Targets
Is Bitcoin bottoming out after the latest dump or will the price continue its short-term downtrend as this signal indicates? Crypto World Analyst Josh examined various BTC charts and said that there has not been much change in the last day.
Examining the diary Bitcoin chart, he said the price continues a short-term bounce from the support area between $60,000 and $61,000 seen recently at the local low. If there is a confirmed break below $60,000, the next significant support area will be between $56,500 and $58,000.
Bitcoin’s daily RSI has entered oversold territory for the first time in many months, which historically indicates that the price is very close to or has already reached a local low. This suggests a potential bounce or sideways consolidation in the near term.
Downtrend resistance and relief levels
Downtrend relief may involve a reduction in bearish price action or momentum, resulting in choppy sideways price action or a bullish bounce upwards into resistance areas around $63,000 to $64,000, and possibly $67,000 to $68,000, with massive resistance between $72,000 and $74,000.
It would only become more bullish in the near term if there are breakouts above significant resistance levels such as $64,000 and ideally $68,000 along with a bearish trend reversal in DXY. Without these bullish reversal signals, the market remains in a short-term downtrend. However, some easing of this trend is expected in the near term, likely in the next few days to a week.
Positive News and Bitcoin ETF Flows
The analyst also discussed positive news and said that on Tuesday there was a change Bitcoin ETF flows. After weeks of near-constant net outflows, there has finally been a net inflow. Although it was a relatively small net inflow of about $31 million, it is still better than outflows. If this trend of net inflows continues, it could be bullish for Bitcoin.
Read too: Bitcoin Price Prediction: What to Expect in the Coming Months?