China’s civil unrest could push Bitcoin below $16,000
Bitcoin (BTC) bulls have managed to stabilize the asset’s price above $16,000, extending the consolidation around the level. In particular, Bitcoin’s prospects for a rally have been held up by the protests against coronavirus restrictions in China, which has caused fresh turmoil in the market.
Actual, News from Kitco analyst Jim Wyckoff on November 28 noted that Bitcoin bears still retain a near-term technical advantage, with the asset staring at a possible decline below $16,000.
“Although BC bulls have stabilized prices since hitting a two-year low last week, bulls are disappointed. The BC bears have an overall technical advantage in the near term. However, the recent sideways price action does little to favor the bulls,” he said.
In particular, Bitcoin is still facing the effects of the FTX crypto exchange collapse on the general market. Interestingly, the first cryptocurrency continues to be weighed down by the prevailing macroeconomic factors, with civil unrest in China casting a gloomy outlook on the markets.
In this case, analysts estimate that the turbulence in China could strain the supply chain, making it challenging to control inflation and interest rates.
Bitcoin price analysis
At press time, Bitcoin was trading at $16,152 with daily losses of around 3% as the asset experienced fresh selling pressure.
The latest correction comes after Bitcoin consolidated after last week’s two-year low price of around $15,400. For BTC to avoid further free lows, the asset needs to sustain 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 key areas, and warns that the market could face new lows depending on how the China situation plays out.
Meanwhile, Bitcoin continues to search for a possible price bottom and embark on a potential rally targeting the $18,000 level, which served as a critical support position in recent weeks. On this line, as reported by Finbold, the cycle channel oscillator (CCO), which indicates oversold territory and market bottoms for Bitcoin, entered the bottom of the bear market.
Bitcoin Technical Analysis
Furthermore, BTC’s 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 remains hopeful that the cryptocurrency will make a comeback. However, projections indicate the flagship digital asset is in line for a further fall, with a Finbold report indicating the asset is likely to trade at $12,117 on Christmas Day 2022.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
