Bitcoin (BTC) – Downside risks prevail despite the current pause in the sell-offPosted on Sunday, November 20 2022 at 8:39 pm GMT+0000
Bitcoin (BTC) has shifted to the sidelines following the tremendous drop of 37% triggered by the collapse of FTX earlier this month.
The crypto-king has been tiptoeing marginally above the lower-Keltner channel, painting a series of tiny candlesticks, while the downwards slope of the channels is sponsoring the prevailing downtrend. Moreover, the oscillators are suggesting that the bearish forces are still active despite the recent price stabilization. The KST is losing steam below its signal and zero lines, and the RSI is flattening well beneath the 50-neutral threshold.
Hence, a decisive close below the most recent low at 15,600 posted on November 9th will see the sell-off accelerating towards the 14,000 barrier taken from the 2019 peak, while in case of steeper declines, the price could dive towards the 12,500 hurdle registered in mid-August 2020.
However, some upside corrections cannot be ruled out given the stochastics’ prolonged presence on the border of the oversold region.
In such a case, initial resistance could emanate from the 20-day exponential moving averages located just beneath the 18,000 – 18,200 congested zone. Crawling higher, the price may attempt to cross above upper-Keltner channel to reach the key 20,000 zone. Further higher, the spotlight will turn towards the November 5th peak at 21,500.
Summarizing, Bitcoin’s downside risks prevail despite the current pause in the sell-off. A drop below 15,600 will further boost selling interest, while only a price hike beyond 18,200 could confirm a more significant recovery.