Bargain hunters turn to Bitcoin after it hit a 2-year low; Can BTC regain $17,000?

Bargain hunters turn to Bitcoin after it hit a 2-year low; Can BTC regain $17,000?

  • Bitcoin
  • November 23, 2022
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  • 19

Although there is still prevailing uncertainty in the crypto market, Bitcoin (BTC) bulls have propelled the maiden digital asset from a two-year low to regain the $16,000 level. The rally emerged as the general market recorded minor improvements, with the sector still appearing far from hitting a price bottom. 

After Bitcoin’s rally, Kitco News analyst Jim Wyckoff on November 23 stated that the recent short-term bullish trend is part of Bitcoin bargain hunting, with bears maintaining a technical advantage. 

“Bitcoin-U.S. dollar prices are higher in early U.S. trading Wednesday, on bargain hunting after prices Monday dropped to a two-year low. The BC bears still have the firm overall near-term technical advantage, which means the path of least resistance for prices is sideways to lower in the near term,” Wyckoff said.

Bitcoin 4-month candle chart. Source: TradingView

Bitcoin pierce analysis

Indeed, Bitcoin dropped to a two-year low, trading at $15,600 on November 22, but buyers’ activity boosted the asset after traders emerged from the sidelines. By the time of publishing, Bitcoin was trading at $16,434, gaining 1% in the last 24 hours. 

Bitcoin 7-day price chart. Source: Finbold

Breaching the $17,000 position will allow Bitcoin to reclaim the $18,000 position, which has acted as a critical support level in recent weeks. In this line, crypto trading expert Michaël van de Poppe in a tweet on November 22, suggested that hitting $16,600 is a chance to move towards $18,000. 

“Crucial resistance for #Bitcoin at $16.6K. If that breaks, the path towards $18K and a ton of short stops to be activated.”

Bitcoin price chart. Source: TradingView

Bitcoin technical analysis

However, the possibility of Bitcoin regaining key support levels appears dimmed based on the technical analysis review. Notably, the one-day gauges of the maiden crypto show a summary of the technicals opting for “sell” at 14, while moving averages are for a “strong sell” at 13. For oscillators, there is widespread neutrality at nine. 

Bitcoin technical analysis. Source: TradingView

At the same time, on-chain data indicates Bitcoin still has room to mount a price movement in either direction. As reported by Finbold, Bitcoin has recorded a spike in volume, a factor linked to trend reversals.

Market sentiments remain bullish despite Bitcoin’s short-term rally; however, if there is clarity from the prevailing conditions, like the FTX crypto exchange fallout, the asset would likely have a chance to build on the current momentum.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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