Although there is still prevailing uncertainty in the crypto market, Bitcoin (BTC) bulls have propelled the maiden digital asset from a two-year low to regain the $16,000 level. The rally emerged as the general market recorded minor improvements, with the sector still appearing far from hitting a price bottom. 

After Bitcoin’s rally, Kitco News analyst Jim Wyckoff on November 23 stated that the recent short-term bullish trend is part of Bitcoin bargain hunting, with bears maintaining a technical advantage. 

“Bitcoin-U.S. dollar prices are higher in early U.S. trading Wednesday, on bargain hunting after prices Monday dropped to a two-year low. The BC bears still have the firm overall near-term technical advantage, which means the path of least resistance for prices is sideways to lower in the near term,” Wyckoff said.

Bitcoin pierce analysis

Indeed, Bitcoin dropped to a two-year low, trading at $15,600 on November 22, but buyers’ activity boosted the asset after traders emerged from the sidelines. By the time of publishing, Bitcoin was trading at $16,434, gaining 1% in the last 24 hours. 

Breaching the $17,000 position will allow Bitcoin to reclaim the $18,000 position, which has acted as a critical support level in recent weeks. In this line, crypto trading expert Michaël van de Poppe in a tweet on November 22, suggested that hitting $16,600 is a chance to move towards $18,000. 

“Crucial resistance for #Bitcoin at $16.6K. If that breaks, the path towards $18K and a ton of short stops to be activated.”

Bitcoin technical analysis

However, the possibility of Bitcoin regaining key support levels appears dimmed based on the technical analysis review. Notably, the one-day gauges of the maiden crypto show a summary of the technicals opting for “sell” at 14, while moving averages are for a “strong sell” at 13. For oscillators, there is widespread neutrality at nine. 

At the same time, on-chain data indicates Bitcoin still has room to mount a price movement in either direction. As reported by Finbold, Bitcoin has recorded a spike in volume, a factor linked to trend reversals.

Market sentiments remain bullish despite Bitcoin’s short-term rally; however, if there is clarity from the prevailing conditions, like the FTX crypto exchange fallout, the asset would likely have a chance to build on the current momentum.

 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.