Bitcoin (BTC) – Odds are still in bears’ favor despite the latest bounce

Bitcoin (BTC) – Odds are still in bears’ favor despite the latest bounce

Posted on Thursday, October 13 2022 at 8:30 pm GMT+0000

Bitcoin (BTC) almost touched September’s three-month low of 18,100 after the release of the U.S. CPI data, before bouncing higher to erase all of its losses for the session in the following few hours.

However, the medium-term technical picture remains gloomy as the crypto-king keeps hovering below the descending trendline stretched from the August 15th top and beneath the negatively charged 55- and 100-day exponential moving averages.

Momentum oscillators are signaling that the sellers are not ready yet to abandon the ship as the Awesome oscillator is stretching its decline in the negative region and the ROC slipped below zero.

So, the bears could soon stage another aggressive attack on the crucial support band of 18,100 – 17,600. Cracking that floor will attract remarkable selling interest likely towards the 16,200 -15,000 region with the former taken from the late November 2020 bottom. Should this base fail to mute negative forces, the decline will likely stretch toward the August 2020 peak of 12,500.

Nevertheless, some upside correction could be on the lines ahead of the next bearish wave, as promoted by the stochastic oscillator, which rebounded from the oversold area and created a bullish crossover within its %K and %D lines.

In such a scenario, profound resistance could stem from the immediate region of 20,200 – 20,500, linking the descending trendline, and the October 4th peak, encompassing the 55-day exponential moving average. Some distance higher, another opposing zone between the 100-day exponential moving average and the September 13th high of 22,700 could mute positive developments from gaining further ground. Only a decisive close above the latter could brighten the medium-term outlook and shift the spotlight towards the August 15th top of 25,200.

To summarize, Bitcoin is healing its wounds following last week’s sell-off, but the odds are still in bears’ favor and a dip in price below 17,600 will unleash another aggressive bearish wave. Only a fast rally beyond 20,500 could confirm some remarkable upside corrections.