Amid heightened fears of a further price correction, Bitcoin (BTC) has managed to find some stability below the $17,000 level after days of fighting between bulls and bears. The asset is looking for an uptrend in price after the increased volatility caused by the collapse of cryptocurrency exchange FTX has, for now, at least abated.
With the new stability, Kitco News Analyst Jim Wyckoff noted on Nov. 18 that Bitcoin faced the threat of a price breakout lower. However, based on recent price movement, the flagship cryptocurrency appears to have gained new strength that helps contain further losses.
“Recent price action had formed a bearish pennant pattern on the daily bar chart. However, the bulls have stabilized prices to avoid a bearish price “breakout” below the pattern. The bulls have now gained a bit of strength late this week, but the bears still have the overall near-term technical advantage,” Wyckoff said.
Bitcoin exhausts momentum to the downside
Furthermore, Bitcoin seems to have exhausted its momentum to the downside as the asset looks to build on the support level formed at $16,200. However, Bitcoin is still trading below the $18,000 level, which has acted as a key support position in recent weeks.
Interestingly, the asset has highlighted a potential sell signal since 2021, with analysts arguing that if downside momentum picks up, Bitcoin faces a potential correction to $10,000.
In fact, it looked likely that Bitcoin would break through as the market faced the full effects of the collapse of cryptocurrency exchange FTX. However, going down to $10,000 would likely give Bitcoin a significant support level with the potential to attract buying pressure.
At the same time, the market is gripped by panic selling fears after the Binance cryptocurrency exchange on November 18 recorded an inflow of 60,000 BTC. The transaction reflected the capitulation of the 2018 bear market.
Bitcoin Technical Analysis
Despite Bitcoin’s short-term stability, technical analysis for the asset remains bearish, with the summary aligning with “sell” at 14. For the moving averages, recommend a “strong sell” at 13, while oscillators they are “neutral” at eight on the daily indicators. .
Meanwhile, Bitcoin was trading at $16,600, representing gains of less than 1% in the last 24 hours. At the same time, the weekly chart indicates losses of around 1.70%.
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