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February 22, 2024
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Bitcoin Price Hits $50K, Analyst Predicts Challenges for BTC Bulls

Bitcoin has recently reached a crucial technical milestone, hitting a 26-month high of $49,974. According to analyst Josh of Crypto World, this achievement aligns with a short-term bearish signal that is currently unfolding. Additionally, Josh suggests that the current chart could indicate new price targets for Bitcoin, as the price faces significant resistance.

The resistance level between $48,000 and $50,000 has seen two previous rejections, making it a crucial area for Bitcoin’s price movement. This range corresponds to the golden pocket, a key Fibonacci level indicating significant resistance. Until Bitcoin breaks above $50,000 with a confirmed weekly candle close, Josh believes that the price may struggle in the short term.

Examining the daily Bitcoin chart, Josh notes that while the Relative Strength Index (RSI) indicates overbought conditions, the momentum remains predominantly bullish, as indicated by the Moving Average Convergence Divergence (MACD) indicator. However, he warns that short-term corrections are possible due to the overbought RSI.

The analyst briefly examines the Bitcoin liquidation heat map, which covers the past week’s price action. He said that there is a noticeable concentration of liquidity around the $47,600 to $47,700 range. Additionally, another cluster of liquidity is observed around $46,700, with further support found near $44,200 to $44,300. These support levels are crucial as they tend to attract Bitcoin’s price movement. Conversely, liquidity to the upside is relatively limited.

In terms of Ethereum, Josh observes a potential short-term bearish signal as the daily RSI experiences a rejection from a descending resistance line. Despite this, the daily MACD indicates overall bullish momentum, suggesting that any potential pullback could be within a broader bullish trend.

Moving to Solana, Josh mentions that recent developments in Bitcoin and Ethereum’s price movements are influencing Solana’s short-term performance. Solana had previously shown signs of a breakout above resistance levels, but a retest of these levels is now underway.

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