Major Reversal on the Horizon, Bulls Eye $68K Target

According to analyst Josh of Crypto World, Bitcoin is on the brink of confirming a massive reversal signal on the charts. He compares the current price action to previous patterns, particularly after crashes, where an initial bounce is often followed by a minor pullback before stabilization. He expects a similar scenario to play out, with a possible slight bullish relief over the next week or so.

Despite the potential bearish outlook, the short-term trend remains bearish, with Bitcoin forming lower highs and lower lows. The price recently encountered support around $54,000 and resistance just under $69,000. Even if Bitcoin experiences a bounce, resistance lies between $56,000 and $61,000, and further at $67,000 to $68,000. As of now, the bearish momentum seems to be in control, although short-term bounces or sideways consolidation are possible.

He further analyzes the daily chart, where Bitcoin is facing resistance in the $56,000 to $57,000 range, with additional resistance at higher levels. While the trend remains bearish, he acknowledges that the RSI (Relative Strength Index) recently confirmed an oversold signal, indicating a potential short-term upward correction or sideways consolidation.

The daily Bitcoin chart indicates oversold conditions in the RSI, suggesting that the downside may be reaching its limit in the short term. Historically, such oversold signals have led to brief bullish relief or sideways movement before potentially continuing the broader bearish trend.

The Super Trend indicator is currently flashing a red reversal signal. However, for this signal to be confirmed, the 4-day candle must close below approximately $55,800. If the candle closes below this level, the signal would likely confirm, potentially leading to a more extended bearish trend. Historically, such signals have preceded multi-month bearish periods, although they don’t necessarily indicate a prolonged bear market.