Another Pullback Ahead; Is the Next Surge Taking Bitcoin to $68K?

Bitcoin is currently trading above $58,000 after a quick rebound from the worrying $56,000 level. The broader crypto market is showing mixed signals, leaving everyone wondering what’s next for the leading cryptocurrency.

For Bitcoin to gain solid momentum, it first needs to reclaim the $60,000 mark and continue its march toward $62,000. While reaching new all-time highs seems like a distant goal at the moment, there’s still hope that the final quarter of the year could bring renewed optimism. As market sentiment picks up, the long-awaited rally to $100,000 may once again become a possibility.

Bitcoin’s Technical Picture

According to analyst Josh of Crypto World, the Super Trend Indicator is still showing a bearish signal in red. This shows that Bitcoin is still in a downward phase, with lower highs and lower lows being formed. The key support level sits at $52,500, while resistance lies near $68,000.

One admirable event was a recent decline in the DXY (U.S. Dollar Index), which hints at a potential bullish short-term move for Bitcoin. Historically, the DXY and Bitcoin often move in opposite directions. While a drop in DXY is a bearish sign for the dollar, it usually benefits Bitcoin in the short term.

Short-Term and Long-Term Trends

Despite the recent bullish action, Bitcoin still faces key resistance levels. According to the volume profile, there’s significant resistance at around $59,500, $61,000, and $645,000. Even though Bitcoin’s short-term momentum is improving, breaking through these levels will be critical for sustained growth.

The 3-hour chart reveals a bearish divergence in the RSI (Relative Strength Index), showing a potential slowdown in Bitcoin’s bullish momentum. Over the next day or so, this divergence might lead to some choppy sideways action or a minor pullback. Bearish divergence typically suggests a loss in bullish strength. In this case, it could mean that Bitcoin’s short-term rally might lose steam soon.