Bitcoin (BTC) bulls have managed to stabilize the asset’s price above $16,000, extending its consolidation around the level. Notably, Bitcoin’s prospects to rally have been held up by the coronavirus restrictions protests in China, causing fresh turmoil in the market.
Indeed, Kitco News analyst Jim Wyckoff on November 28 noted that Bitcoin bears still retain a near-term technical advantage, with the asset staring at a possible slump below $16,000.
“While the BC bulls have stabilized prices since they hit a two-year low last week, the bulls are disappointed BC prices have not seen safe-haven demand amid the China civil unrest over the weekend. The BC bears have an overall near-term technical advantage. However, the recent sideways price action very slightly favors the bulls,” he said.
Notably, Bitcoin is still facing the effects of the FTX crypto exchange collapse on the general market. Interestingly, the maiden cryptocurrency continues to be weighed down by the prevailing macroeconomic factors, with the civil unrest events in China presenting a gloomy outlook on markets.
In this case, analysts are projecting the turbulence in China could strain the supply chain, making it challenging to control inflation and interest rates.
Bitcoin price analysis
By press time, Bitcoin was trading at $16,152 with daily losses of about 3% as the asset experienced new selling pressure.
The latest correction comes after Bitcoin consolidated following last week’s two-year low price of around $15,400. For BTC to avoid any further free low, the asset must maintain its price above $16,100.
Additionally, crypto trading expert Michaël van de Poppe in a tweet on November 28 noted that Bitcoin has failed to break crucial areas, warning that the market could encounter fresh lows depending on the China situation unfolds.
Meanwhile, Bitcoin continues to search for a possible price bottom and embark on a potential rally targeting the $18,000 level, which acted as a critical support position in recent weeks. In this line, as reported by Finbold, the cycle channel oscillator (CCO), which indicates the oversold area and market bottoms for Bitcoin, entered the bear market bottom.
Bitcoin technical analysis
Furthermore, BTC technical analysis remains bearish, with a summary recommending ‘sell’ at 15 while moving averages are for a ‘strong sell’. Elsewhere, oscillators are neutral at 9.
At the same time, despite Bitcoin’s latest setback, the market is still hopeful that the cryptocurrency will come back. However, projections indicate that the flagship digital asset is in line for a further drop, with a Finbold report indicating that the asset is likely to trade at $12,117 on Christmas day 2022.
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