Originally published on: September 29, 2024
Bitcoin is on the verge of completing a bullish engulfing pattern on its monthly price chart, a promising sign not seen in over a year. While the long-term outlook remains positive, recent indicators suggest potential downside volatility in the short term.
Following a recent upswing from a local low of $52,150, Bitcoin has seen a surge in price, breaking past previous resistance levels. Despite this upward trend, open interest in Bitcoin futures has also been rising rapidly, indicating significant market involvement.
Popular independent trader Adam has pointed out concerning signs in the spot market, with aggressive selling pressure near the $66K resistance level. This suggests a potential for market corrections in the near future.
Technical analysis reveals a bearish divergence on Bitcoin’s 4-hour chart, signaling a possible correction to around $62,300 in the short term. If the correction continues, traders may look for support levels near $59,500 to $61,000.
While a drop below $60,000 could threaten the current bullish momentum, many analysts remain optimistic about Bitcoin’s long-term prospects. As always, it’s important to conduct your own research and make informed investment decisions.
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