Although there is still prevailing uncertainty in the crypto market, Bitcoin (BTC) bulls have propelled the maiden digital asset from a two-year low to regain the $16,000 level. The rally emerged as the general market recorded minor improvements, with the sector still appearing far from hitting a price bottom.
After Bitcoin’s rally, Kitco News analyst Jim Wyckoff on November 23 stated that the recent short-term bullish trend is part of Bitcoin bargain hunting, with bears maintaining a technical advantage.
“Bitcoin-U.S. dollar prices are higher in early U.S. trading Wednesday, on bargain hunting after prices Monday dropped to a two-year low. The BC bears still have the firm overall near-term technical advantage, which means the path of least resistance for prices is sideways to lower in the near term,” Wyckoff said.
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Indeed, Bitcoin dropped to a two-year low, trading at $15,600 on November 22, but buyers’ activity boosted the asset after traders emerged from the sidelines. By the time of publishing, Bitcoin was trading at $16,434, gaining 1% in the last 24 hours.
Breaching the $17,000 position will allow Bitcoin to reclaim the $18,000 position, which has acted as a critical support level in recent weeks. In this line, crypto trading expert Michaël van de Poppe in a tweet on November 22, suggested that hitting $16,600 is a chance to move towards $18,000.
“Crucial resistance for #Bitcoin at $16.6K. If that breaks, the path towards $18K and a ton of short stops to be activated.”
Bitcoin technical analysis
However, the possibility of Bitcoin regaining key support levels appears dimmed based on the technical analysis review. Notably, the one-day gauges of the maiden crypto show a summary of the technicals opting for “sell” at 14, while moving averages are for a “strong sell” at 13. For oscillators, there is widespread neutrality at nine.
At the same time, on-chain data indicates Bitcoin still has room to mount a price movement in either direction. As reported by Finbold, Bitcoin has recorded a spike in volume, a factor linked to trend reversals.
Market sentiments remain bullish despite Bitcoin’s short-term rally; however, if there is clarity from the prevailing conditions, like the FTX crypto exchange fallout, the asset would likely have a chance to build on the current momentum.
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