Bitcoin (BTC) bulls have managed to stabilise the maiden cryptocurrency’s price after slumping to a two-year low early in the week. Despite the short-term recovery, Bitcoin is still facing a threat of further correction, considering the market is yet to recover fully from the FTX crypto exchange collapse.
“While prices Monday dropped to a two-year low, the bulls have stabilized prices since. The BC bears do still have the overall near-term technical advantage. However, the sideways price action most of this week does slightly favor the bulls. Bulls would need to show solid power to suggest a market bottom is in place,” he said.
Bitcoin price analysis
As things stand, Bitcoin is trading at $16,481, recording less than 1% gains in the last 24 hours. At its current value, Bitcoin has dropped about 75% from the previous all-time high.
Elsewhere, Bitcoin technical analysis is dominated by bearish sentiments, with a summary going for a ‘sell’ at 14 while moving averages are for a ‘strong sell’. Elsewhere, oscillators remain ‘neutral’ at nine on the daily gauges as retrieved from TradingView.
At the same time, crypto trading expert Michaël van de Poppe in a tweet on November 25, noted that Bitcoin is currently between levels while stating that the asset can potentially breach the $18,000 level.
“Bitcoin in between levels. Clearly want to sustain above $16.250-16.450. Clearly want to break $16.800-17.000. If that happens, path towards $18.400 is open,” he said.
Bitcoin’s possible bottom
Notably, with the market looking for a possible Bitcoin price bottom, a Finbold report noted that the asset’s recent price movement has mimicked a 2015 trend that resulted in a bottom. Indeed if the trajectory is replicated, it could hint that a price rally might be imminent.
It is worth noting that besides suffering from FTX crisis-induced correction, Bitcoin has been impacted by the prevailing macroeconomic factors led by skyrocketing inflation and interest rate hikes.
Indeed, Bitcoin has consolidated at $16,500 after the Federal Reserve hinted at a possible slowdown from the aggressive interest rate hikes.
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