Bitcoin (BTC) is currently pricing in a significant support zone, indicating a short-term warning signal.

Analyst Josh said in his latest video that not much has changed in the Bitcoin outlook. He mentioned that the current price movements in Bitcoin could last for a few weeks or even a few months. Last week, Bitcoin experienced some relief after a short-term decline, but there was no clear upward trend. Josh suggested that Bitcoin has been moving downwards in the past few weeks due to the rising trend in DXY (US dollar index).

To invalidate the downward trend, a confirmed bull reversal signal, such as a breakout above the resistance, is needed. The analyst expressed that Bitcoin is currently in a short-term downward trend.

Levels to follow for Bitcoin

An analyst noted that with BTC closing below $60,000 for a day, it could test the range of $56,000-$58,000.

Currently, Bitcoin is unable to surpass the critical resistance zone of $63,000 to $64,000, which Josh previously warned about. This range has experienced significant selling pressure and resistance, leading to the expected struggles in price. In the short term, it is predicted that there will be sideways price movement between $60,000 and $64,000.

Despite consolidation, the analyst expressed that Bitcoin will remain in a short-term downtrend until proven otherwise. Emphasized the need for confirmed reversal signals to invalidate the downtrend.

An analyst concluded by looking at the Bitcoin liquidation heat map. He indicated that the recent liquidity around $62,100 to $62,200 has been wiped out. The next important liquidity levels to watch are around $61,000 and $64,000, with more liquidity currently at $61,000. This suggests that Bitcoin's price could move towards the $61,000 liquidity level in the short term.

This article does not contain investment advice or recommendation. Every investment and trading movement carries risk and readers should conduct their own research when making decisions.