Bitcoin Retesting Crucial Area on Chart After Short Squeeze: Analyst Josh of Crypto World

Bitcoin is currently making waves in the cryptocurrency market as it retests a crucial area on the chart following a dramatic shift that wiped out billions of dollars in short positions. Analyst Josh of Crypto World has noted a major bullish signal flashing on Bitcoin’s chart, coinciding with recent price action showing a breakout above the resistance at $64.2K-$64.9K, now being retested as support.

This retesting comes after a short squeeze that cleared much of the liquidity between $65,000-$65,500, with the next major liquidity levels at $66,500 and $67,500. In addition, there was some minor liquidity at $62,000. The recent surge in Bitcoin’s price has attracted high investor demand, with spot Bitcoin ETFs seeing a massive inflow of over $422 million on Tuesday, with BlackRock contributing $260 million. This has prompted other providers like Fidelity and ARK to also purchase Bitcoin.

Analyzing the Bitcoin charts on the 3-day and 4-day timeframes, Josh observed little change over the last day. However, there was a drop in the US Dollar Index (DXY), which typically has an inverse correlation with Bitcoin. This correlation holds true over 90% of the time, with a bearish trend in the DXY often leading to a bullish trend in Bitcoin.

Despite a slight pullback in Bitcoin’s price, the overall trend and momentum remain bullish. Key resistances at $60,000-$61,000 and $63,000-$64,000 have been broken and are now acting as new support levels. If Bitcoin confirms a bounce from this retested support, the next resistance levels to watch are $67,000-$68,000, with a breakout above $68,000 potentially paving the way towards new all-time highs, with the final resistance between $72,000-$74,000. Investors and traders are eagerly watching to see how Bitcoin’s price action unfolds in the coming days.