Bitcoin price continues to show strength despite worsening market conditions triggered by the recent collapse of FTX, the Fed rate hikes and the ongoing mass protest in China over their Covid-zero pandemic policy. In today’s trading session, it was able to push past the $17,000 price level in the early hours and is currently up by almost 3 per cent.
The latest resurgence in Bitcoin comes at a time when its investors’ confidence is down following the FTX crypto exchange collapse that triggered one of the largest Bitcoin sell-off in its history. According to on-chain data from Glassnode, November’s BTC sell-off was the fourth-largest ever.
The recent bankruptcy filing from BlockFi has also renewed fears of a possible Bitcoin downturn which could mirror the crash we saw during the FTX collapse. Therefore, investors who sold off their Bitcoin have mostly stayed away, waiting to hop into the next bullish trend.
As seen from the chart below, Bitcoin has mostly traded within the support and resistance levels of $15490 and $17140, respectively, since November 10, following the collapse of FTX. The chart also shows that today’s bullish push is an extension of a trend that started yesterday, with Bitcoin closing with a percentage price gain. Indicators such as the Williams Alligator also show a high likelihood that the current trading within the price range of $15490 and $17140 is likely to continue.
Therefore, I expect Bitcoin to continue trading in a sideways market for the next few trading sessions. However, if a trend will be established, it will mostly be to the upside as more investors continue looking for opportunities of buying low.
This post was last modified on Nov 30, 2022, 12:38 GMT 12:38