Caution and hopes – Although the bulls have taken the price of Bitcoin (BTC) well above $16,000, the cryptocurrency has still not crossed a threshold, which would mark a change in trend. However, one indicator raises hopes that the bear markets will end soon.
Bitcoin price: no trend reversal
Bitcoin price rises to $16,792 on Bitfinex today, November 24, 2022. Cryptocurrency is trading at $16,544 at the time of writing this article. The markets are currently entitled to a doji.
As Bitcoin holds above $16,500, analyst Kevin Svenson shared a chart of the BTC/USDT pair on a weekly basis, as a reminder that Bitcoin is still in a downtrend, and “we are far from confirming a bullish trend reversal “.
For Kevin Svenson, the markets could have to wait “several weeks or months” before witnessing a change of “direction”.
Trader Rekt Capital has also guest cautious markets. Despite the rises of the past few days, the price of Bitcoin is still trading below monthly resistance around $17,400. According to Rekt Capital, as long as Bitcoin does not cross this level, “there will always be a threat of stronger rejection to a downward continuation and new lows”.
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Heavily Oversold Bitcoin: Towards the end of the crypto winter?
Although the markets are rather lackluster due to the current environment, not all traders are focused on the bearish scenarios for Bitcoin in the short term.
Trader Alan Farley shared a chart comparing the price of Bitcoin on a monthly basis to the stochastic oscillator. The latter shows an oversold bitcoin. The last time Bitcoin reached this oversold level was in January 2019, then the cryptocurrency subsequently performed a 300% rally.
At the time, Bitcoin was emerging from the crypto winter of 2018. The context may be different this time around due to the FTX crisis, but Bitcoin could also benefit from an upcoming decrease in the magnitude of price increases. interest rate by the US Federal Reserve (FED).
The collapse of FTX is prompting analysts and traders to be extra cautious in their predictions of the price of Bitcoin in the very short term. Although the fall of the crypto stock market is shaking the markets, the scale of the current crisis and its ability to prolong the bear market are to be put into perspective in view of this analysis by Chainalysis, which maintains that the crypto industry has seen worse.
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