Altcoins
No confirmation of bearish reversal; price targets $60k with 3% gains
According to analyst Josh from Crypto World, Bitcoin is currently experiencing a bullish divergence as an indicator is falling, which points to imminent liquidations, but this time on the upside. However, he said that the German government is running out of Bitcoin, currently holding less than 4,000 BTC worth just over $200 million. Given their recent sell-off rates, they may run out of Bitcoin soon.
Balancing this selling pressure, there have been significant inflows into spot Bitcoin ETFs. On Thursday alone, there was a net inflow of about $79 million. While these inflows have been decreasing throughout the week, from nearly $300 million on Monday to $79 million on Thursday, overall, ETF inflows are helping to offset the German government’s selling pressure, keeping the market relatively neutral.
Analyzing Bitcoin charts, He said that Bitcoin has not yet confirmed a bearish reversal. For this to happen, Bitcoin would need to close below $55.8k for four consecutive days. Bitcoin is currently holding above this level, indicating that it is still in a broader uptrend. He cites past cases, such as August and March 2023, where Bitcoin briefly fell below the trend indicator but did not confirm a bearish reversal.
Furthermore, the DXY breakdown is a bullish signal for Bitcoin. Historically, when DXY is bearish, Bitcoin tends to be bullish about 90-95% of the time. Currently, as DXY is retreating, it signals bullish momentum for Bitcoin.
A slight bullish relief or choppy sideways price action is expected for the rest of the week, which could extend into the next week as well. The support levels for Bitcoin are $56k-$57k and $51k-$53k. Finally, the Bitcoin liquidation heat map shows that after the recent liquidations at around $56.6k-$56.8k, the next major liquidation zone is between $59.8k and $60k.