Bitcoin (BTC1) – Correction stalled temporarilyPosted on Thursday, December 16 2021 at 9:47 pm GMT+0000
Bitcoin’s (BTC) sharp bearish correction from the November 10th all-time high of 69,350 seems stalled temporarily just above the 61.8% Fibonacci retracement level of the June-November uptrend.
Although the sharp descent slid the long-term simple moving averages, it didn’t yet harm the prevailing positive structure of successive higher highs and higher lows, and the persistent positive alignment of the moving averages is still defending that optimistic view.
The risk for an upside reversal from current levels is elevating given the stochastics’ prolonged presence around the 20 oversold level and the positive shift in the ROC oscillator, while the slight recovery in the MACD is another encouraging signal that buying interest might soon grow.
For that bullish scenario to materialize, bitcoin will need to close above the 100-day simple moving average and then surge beyond the September 7th high at 53,100. Such a move will boost buyers’ confidence in the prevailing uptrend, triggering an initial surge towards the 23.6% Fibonacci level of 59,600. Higher beyond, the rally will likely see a sharp extension towards the all-time high of 69,350.
In the event the bearish corrective wave extends beyond the 61.8% Fibonacci level at 44,200, breaking the September 21st low at 40,000 will dismantle the current structure and motivate stronger selling pressures, likely pushing the price through the 78.6% Fibonacci level at 37,400 and towards the 28,800 bottom.