Bitcoin Price Slightly Above $58k, Reversal Signal Appears on the BTC Chart: Analyst Josh

Bitcoin price is currently trading slightly above the crucial $58k levels, leaving everybody surprised with its abrupt dip below the $60k mark.

Bitcoin price dropped sharply on Monday, sliding below the crucial $60,000 level. The world’s largest cryptocurrency faced resistance at higher levels, leading to a pullback from recent gains.

One analysis suggests that a reversal signal is now visible on the Bitcoin chart. The analysis, conducted by Josh of Crypto World, highlights Bitcoin’s price retesting critical support after facing resistance.

The analysis points out a pullback and potential bearish trend reversal in the DXY, which could indicate a bullish trend reversal for Bitcoin.

Here's a summary of the analysis for Monday, November 21, 2022.

Bitcoin Price Retesting Critical Support Levels After Facing Resistance At Higher Levels, Analysis Says

Monday's analysis begins by discussing Bitcoin's price retesting critical support levels. After encountering resistance at higher levels, Bitcoin slid below the $60,000 threshold.

The analysis notes that Bitcoin faced crucial support levels between $60,000 and $61,000 after being met with resistance at around $63,000 to $64,000. However, the price later dipped below the $60k mark.

With a short-term bearish trend, the analysis anticipates potential sideways movement within the current support-resistance range. According to the analysis, a break below $60,000 could indicate further downside towards the next support zone from $56,000 to $58,000.

The analysis highlights the need for confirming a breakout above resistance levels for shifting from this bearish outlook. This confirmation would involve daily candle closes above key thresholds, along with corroborating signals in the DXY.

The analysis then points to a warning signal in DXY that preceded potential bearish trend confirmation for Bitcoin, as mentioned in an earlier analysis about a month ago.

Monday's analysis also discusses recent volatility in Bitcoin's price, especially on weekdays, contrasting with lower volatility over weekends. The analysis notes recent movements in the 4-hour Bitcoin RSI, which had a shift from overbought to oversold territories. A pullback was anticipated, as seen over the past few days.

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