Bitcoin Price Dips Below July Wedge Highs of $58,280; Bearish Signals Remerge

Analyst Josh of Crypto World has observed that Bitcoin is continuing its bearish trend, with the price now testing a critical support level. A new signal has also emerged for the broader crypto market.

The Bitcoin chart continues to show bearish signals, as indicated by the SuperTrend indicator. Over the past day, the bearish trend remains unchanged, with Bitcoin forming lower highs and lower lows. The current price action is developing within a descending broadening wedge pattern, where resistance is around $68,500 and support is near $53,500. Although the overall trend is bearish, occasional bullish movements are still possible.

The analyst also said that Bitcoin recently faced resistance at $63,000 and $60,000-$61,000 levels, leading to a decline towards the support area between $56,000 and $57,000. If Bitcoin closes below $56,000 on the daily chart, further support could be found around $51,000-$53,000, with potential minor support at $54,000.

A Ray of Hope?

He added that despite the ongoing bearish trend, certain indicators are showing neutral momentum, such as the RSI, and funding rates across the crypto market are turning negative. This negative funding rate could be a bullish signal, as it indicates high demand for short positions. If these short positions begin to close, it could trigger a short squeeze, adding upward pressure on Bitcoin’s price.

What Other Analysts Are Saying?

Analyst Rekt Capital wrote on X, “Still successfully retesting the Channel bottom as support. Continued price stability here would be beneficial for future trend continuation to the upside.”

The analyst pointed out that Bitcoin is currently facing resistance at the local highs of approximately $61,700. This level, which corresponds to the late June wedge highs around $62,000, has returned as a significant resistance point. On the other hand, support is being provided by the early July wedge highs at around $58,280.

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