Bitcoin (BTC) – Staged an impressive rebound following the recent sharp sell-offPosted on Thursday, November 10 2022 at 9:16 pm GMT+0000
Bitcoin (BTC) staged an impressive rebound on Thursday following the U.S. lighter-than-expected inflation report, jumping more than 10% back towards the lower-Bollinger band located just beneath the 17,600 – 18,200 key resistance area. However, the move did not affect the medium-term strong negative bearing.
This assumption is reinforced by the oscillators which are suggesting that downward forces have yet to subside. The MACD is losing ground below its zero mark and the stochastic is sustaining a sturdy negative charge while approaching the 20-threshold, both promoting additional price deterioration.
Hence, if the crypto leader loses the battle with the aforementioned resistance region and drifts back lower, it will seek shelter near the 2019 high of 13,900. Should this region prove easy to breach, the sellers will then dive for the mid-August 2020 top of 12,400.
The crypto leader’s drop over the last few days was so harsh, that the volatility rose exponentially, and the price fell even below the lower-Bollinger band. Hence, the likelihood for some upside corrections is amplifying as the IMI just jumped over the 30-mark flashing oversold conditions. Moreover, the price drop beneath the Bollinger band is another technical signal that the market reached extreme conditions.
Hence, in order to stretch the current recovery, the buyers will first need to secure a decisive daily close above the 17,600 – 18,200 zone. In such a scenario, those are expected to target the mid-Bollinger band at 19,900 ahead of the November 5th top at 21,500. A successful break above the latter would open the way for the area linking the upper-Bollinger band and the September 13th top of around 22,500 – 22,800.
To conclude, Bitcoin’s bearish mode persists despite the recent pause in the sell-off, and sellers are not easily expected to lose their interest in the market. That said, a jump above 18,200 could feed some optimism for a more meaningful upside correction.