Amid increased fears of a further price correction, Bitcoin (BTC) has managed to find some stability below the $17,000 level after days of a tussle between bulls and bears. The asset is looking for a price uptrend after the heightened volatility caused by the FTX cryptocurrency exchange collapse has, for now, at least subsided.
With the newfound stability, Kitco News analyst Jim Wyckoff on November 18 noted that Bitcoin was facing a threat of a downside price breakout. However, based on recent price movement, the flagship cryptocurrency appears to have acquired new strength helping contain any further losses.
“Recent price action had formed a bearish pennant pattern on the daily bar chart. However, the bulls have stabilized prices to prevent a bearish downside price “breakout” from the pattern. Bulls have now gained a slight bit of strength late this week, but the bears still have the overall near-term technical advantage,” Wyckoff said.
Bitcoin exhausts downward momentum
Furthermore, Bitcoin appears to have exhausted its downward momentum as the asset seeks to build on the support level formed at $16,200. However, Bitcoin is still trading below the $18,000 level, which acted as a key support position in recent weeks.
Interestingly, the asset has highlighted a possible sell signal since 2021, with analysts maintaining that if the downward momentum is awakened, Bitcoin faces a potential correction to $10,000.
Indeed, Bitcoin looked likely to breach the level as the market faced the full effects of the FTX cryptocurrency exchange collapse. However, dropping 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 with fear of panic selling after the Binance crypto exchange on November 18 recorded an inflow of 60,000 BTC. The transaction mirrored the 2018 bear market capitulation.
Bitcoin technical analysis
Despite Bitcoin’s short-term stability, the asset’s technical analysis remains bearish, with the summary aligning with ‘sell’ at 14. For moving averages, recommend a ‘strong sell’ at 13, while oscillators are ‘neutral’ at eight on the daily gauges.
In the meantime, 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 about 1.70%.
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Source: https://finbold.com/can-bitcoin-bulls-trigger-a-new-rally-to-18000-as-bears-lose-momentum/