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Bitcoin is currently holding a crucial support level on the price chart, holding above $65,000. Although there has been a recent short-term drop, Bitcoin still shows signs of an oversold condition. This downturn coincided with major news affecting the crypto market, which was dissected by analyst Josh of Crypto World.
Impact of Recent News
Today, the U.S. government reportedly launched an investigation into Tether (USDT), the leading stablecoin. This news was initially reported by the Wall Street Journal, but Tether’s CEO has denied the claims, stating the firm is not under investigation. Following the initial news, Bitcoin’s price dropped around $1,000, but bounced back slightly after the CEO’s denial.
Historically, there has been much speculation and fear (often referred to as “FUD”) surrounding Tether, yet it has consistently remained the top stablecoin despite these claims.
Bitcoin Price Analysis
On the four-day chart, Bitcoin is still above the critical $65,000 line. Maintaining this level is essential for sustaining a bullish long-term trend. If Bitcoin closes below this threshold, it could signal a bearish trend.
Short-Term Price Action
Currently, Bitcoin is trading within a sideways range of approximately $66,700 to $68,300. This range means a neutral short-term outlook, as the price oscillates without clear momentum. The Relative Strength Index (RSI) suggests we may see some sideways action or a slight pullback, which could reset the RSI for potential upward movement later.
Key Support and Resistance Levels
Support: Key support is at $65,000.
Resistance: Resistance exists between $69,600 and $77,000.
If Bitcoin crosses above this resistance level, it may trigger a short squeeze, pushing prices higher. However, falling below the support level could liquidate long positions. There isn’t a substantial amount of liquidity immediately below the current price, which means downward movement could be limited.