Bitcoin (BTC) – Could attract additional buying interest in the near-term

Bitcoin (BTC) – Could attract additional buying interest in the near-term

Posted on Sunday, December 4 2022 at 8:56 pm GMT+0000

Bitcoin (BTC) has been lately recouping some of the losses it incurred at the beginning of November, as traders took some comfort from Fed Chair Powell’s talk of a Fed pivot amid easing FTX contagion fears. The crypto-king is currently consolidating the recent rebound from the two-year low of 15,400 just beneath the middle-line if the regression channel stretched from August 15th peak.

Technically, the negative slope of the 20-day simple moving average eased, mirroring the current pause in the downtrend, while the falling 50- and 100-moving averages keep defending the dictating bearish picture.

Meanwhile, the oscillators however, are suggesting that the current recovery could see further continuation in the near-term. The TSI crossed beyond its trigger line in the negative region, the RSI is flirting with the 50-neutral threshold after bouncing off its moving average, and the ROC is powering back from the vicinity of its equilibrium line.

Nevertheless, the path higher could be a rocky one as several obstacles may quickly block the way. Following a jump above the middle-line of the regression channel a tough battle could take place around the 18,000 – 18,200 zone empowered by the 50-day simple moving averages. Some distance higher, the 100-day moving average may try to impede the crypto-king from challenging the channel’s upper line and the neighboring key 20,000 hurdle. If these barricades prove easy to clear, the spotlight will turn to the November 5th peak around 21,500.

If sellers re-emerge near the middle-line of the channel and squeeze the price below the 20-day simple moving average, they will push to retest the 15,600 – 15,400 band shaped by the November lows. Cracking that base will trigger an aggressive sell-off towards the 14,000 area, while a sharper decline could reach the 12,500 hurdle taken from the August 2020 top.

To summarize, although technical signals are improving, the medium-term downtrend is still intact for now. A decisive move beyond 18,200 could confirm a more meaningful recovery.