Bargain Hunters Turn to Bitcoin After It Hits a Two-Year Low; Can BTC Regain $17,000?
While uncertainty remains prevalent in the crypto market, Bitcoin (BTC) bulls have driven the first digital asset off a two-year low to regain the $16,000 level. The rally emerged as the overall market registered minor improvements, and the sector still sees appear to be far from reaching a price floor.
After Bitcoin’s rally, News from Kitco analyst Jim Wyckoff on November 23 stated that the recent short-term bullish trend is part of the Bitcoin bargain hunt, with bears maintaining a technical advantage.
“Bitcoin-US dollar prices are higher in early US trading on Wednesday, looking for a bargain after prices fell to a two-year low on Monday. The BC bears still have the firm overall technical advantage in the near term, meaning that the path of least resistance for prices is sideways to lower in the near term,” Wyckoff said.
Bitcoin pierce analysis
Indeed, Bitcoin fell to a two-year low, trading at $15,600 on November 22, but buyer activity boosted the asset after traders emerged from the sidelines. At press time, Bitcoin was trading at $16,434, up 1% in the past 24 hours.
Breaking the $17,000 position would allow Bitcoin to regain the $18,000 position, which has served as a critical support level in recent weeks. In this line, crypto trading expert Michaël van de Poppe in a chirping on November 22 suggested that hitting $16,600 is a chance to move towards $18,000.
“Crucial resistance for #Bitcoin at $16.6K. If it breaks, the road to $18,000 and lots of short stops will be activated.”
Bitcoin Technical Analysis
However, the possibility of Bitcoin regaining key support levels seems downplayed based on the technical analysis review. In particular, the one-day gauges of the Virgo Crypt show a summary of the technicals that choose “sell” at 14, while the moving average is for a “strong sell” at 13. For oscillators, there is widespread neutrality at nine.
At the same time, chain data indicates that Bitcoin still has room to mount a price movement in either direction. As reported by Finbold, Bitcoin has seen an increase in volume, a factor linked to trend reversals.
Market sentiment remains bullish despite Bitcoin’s short-term rally; However, if there is clarity from the prevailing conditions, such as the FTX cryptocurrency exchange fallout, the asset is likely to have a chance to build on the current momentum.
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