Could Bitcoin Bulls Spark Another Rally to $18,000 as Bears Lose Momentum?
Amid heightened fears of a further price correction, Bitcoin (BTC) has managed to find some stability below the $17,000 level after days of a battle between bulls and bears. The asset is looking for an uptrend in price after the increased volatility caused by the collapse of the FTX cryptocurrency exchange has, for now at least, subsided.
With the newfound stability, News from Kitco analyst Jim Wyckoff on November 18 noted that Bitcoin was facing a threat of a downside price breakout. However, based on recent price movements, the flagship cryptocurrency appears to have gained new strength that is helping to limit further losses.
“Recent price action had formed a bearish pennant pattern on the daily bar chart. However, the bulls have stabilized prices to prevent a bearish downside price breakout from the pattern. Bulls have now gained some strength late this week, but the bears still have the overall technical advantage on the cards term, Wyckoff said.
Bitcoin clears downward momentum
Furthermore, Bitcoin appears to have used up its downward momentum as the asset seeks to build on the support level formed at $16,200. However, Bitcoin is still trading below the $18,000 level, which served as a key support position in recent weeks.
Interestingly, the asset has highlighted a possible sell signal since 2021, with analysts claiming that if the downward momentum is reawakened, Bitcoin faces a potential correction to $10,000.
In fact, it looked like Bitcoin would break the level as the market faced the full effects of the collapse of the FTX cryptocurrency exchange. However, falling to $10,000 is likely to provide Bitcoin with a significant support level with the potential to attract buying pressure.
At the same time, the market is gripped by fears of panic selling after the Binance crypto exchange recorded an inflow of 60,000 BTC on November 18. The transaction mirrored the capitulation in the 2018 bear market.
Bitcoin Technical Analysis
Despite Bitcoin’s near-term stability, the asset’s technical analysis remains bearish, with the summary in line with “sell” at 14. For moving averages, we recommend a “strong sell” at 13, while oscillators are “neutral” at eight on the daily gauges.
Meanwhile, Bitcoin traded at $16,600, representing gains of less than 1% over the past 24 hours. At the same time, the weekly chart indicates losses of around 1.70%.
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