Bitcoin (BTC) Retests Critical Support Area, Faces Short-Term Warning Signal

Bitcoin is currently experiencing a short-term warning signal as it continues to retest a critical chart area. This movement is happening alongside

Bitcoin is showing a short-term warning sign as it continues to retest a critical chart area, with new liquidations emerging that require close monitoring.

Fresh liquidations are emerging around $61.9k to $62.1k, with more liquidity at $59,000 and $56.5k to $57,000. There is also some short-term liquidity building around $66.4k.

After a net inflow of around $300 million on Monday and $422 million on Tuesday, Wednesday saw a decrease in net inflow to spot Bitcoin ETFs.

This comes as Bitcoin experiences a retest of a crucial support area between $63,000 and $64,000. Holding above this support is key, as a daily candle close below $63,000 could indicate a short-term bearish trend.

If the price falls below this support, the next support level lies between $60,000 and $61,000, based on the 4-hour Bitcoin chart.

Resistance for Bitcoin lies just below $67,000, extending up to around $68,000, with further resistance between $72,000 and $74,000. Even in a bullish trend, price struggles around these resistance areas are common.

A 4-hour chart divergence has emerged, indicating some choppy sideways action or a slight pullback. This contrasts with a bullish divergence on the daily chart, suggesting any pullback may be temporary within the broader bullish trend.

Bitcoin is experiencing a retest of a critical support area between $63,000 and $64,000, with a daily candle close below $63,000 potentially signaling a short-term bearish trend.

The price could quickly drop to around $62,000 before a rebound, driven by these liquidity levels.

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