Bitcoin is currently exhibiting a bullish divergence as it approaches a significant resistance level. This move is crucial to confirming a double bottom pattern, which many analysts believe could signal a potential uptrend. On Friday, a major event occurred in the Bitcoin market with a massive net inflow into spot Bitcoin ETFs totaling over $236 million.
Bitcoin Technical Analysis
Crypto World analyst Josh said the market remains largely unchanged. However, BTC is approaching a critical resistance line that has been a barrier for most of the year, currently at approximately $66,000. A breakout above this level, ideally past $68,000, would provide greater confidence in a sustained uptrend rather than a mere short-term rally amid a larger bear market.
Bitcoin has held support in the $60,200 to $62,200 range. The price is now moving towards the 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 few candlestick 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
Finally, the liquidation heatmap 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.
