Currently, Bitcoin is displaying a bullish divergence as it approaches a significant resistance level. This movement is crucial for confirming a double bottom pattern, which many analysts believe could signal a potential upward trend. On Friday, a major event occurred in the Bitcoin market with a massive net inflow into spot Bitcoin ETFs amounting to over $236 million.
Technical Analysis of Bitcoin
Analyst Josh of Crypto World said that the market remains largely unchanged. However, BTC is inching closer to a critical resistance line that has been a barrier for most of the year, currently sitting at approximately $66,000. A breakout above this level, ideally surpassing $68,000, would provide greater confidence in a sustained bullish trend rather than a mere short-term uptick amidst a larger bearish market.
Bitcoin has maintained support in the range of $60,200 to $62,200. The price is now advancing toward resistance between $64,100 and $64,500. A successful breakout beyond this zone could lead to more significant resistance levels around $67,000 and $68,000.
Future Projections
Potential for Double Bottom Pattern
Bitcoin is on the verge of potentially confirming a double bottom pattern, with the critical breakout line at approximately $63,800. Achieving a couple of candle closes above this resistance would not only validate the pattern but could also lead to bullish price targets at $67,200 and $68,300.
Liquidity and Market Dynamics
Lastly, the liquidation heat map indicates significant liquidity to the upside between $64,500 and $65,000, which will be crucial to watch as the market progresses. This area could act as a pivotal point for traders looking to capitalize on the current bullish momentum.
At the time of writing, Bitcoin is down by more than one percent and is trading at $62,600 levels.
