Bitcoin (BTC) Price Analysis: BTC Holds Crucial Support Level Above $65K, What's Next?

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 (BTC) is observing a crucial support level on the price chart, remaining above the $65,000 zone. While there was a brief short-term drop, BTC still shows signs of being oversold. This downturn coincided with major news impacting the crypto market, which was analyzed by Crypto World analyst Josh.

Recently, news emerged that the U.S. government had launched an investigation into Tether (USDT), the leading stablecoin. This news was first reported by the Wall Street Journal, though Tether’s CEO has refuted these claims, stating that the firm is not being investigated. Following the initial news, BTC price dropped by around $1,000, but it recovered slightly after the CEO’s denial.

Throughout its history, there has been a lot of speculation and fear (often referred to as “FUD”) surrounding Tether, yet it has continuously remained the top stablecoin despite these claims.

Bitcoin Price AnalysisFour-Day Chart

On the four-day chart, BTC is still trading above the crucial $65,000 line. Maintaining this level is essential for sustaining a bullish long-term trend. If BTC closes below this threshold, it could indicate a bearish trend.

Short-Term Price Action

At the moment, BTC is trading within a sideways range of approximately $66,700 to $68,300. This range indicates a neutral short-term outlook, as the price oscillates without clear momentum. The Relative Strength Index (RSI) suggests that we may see some sideways action or a slight pullback, which could reset the RSI for potential upward movement later.

If BTC 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.

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