The recent Bitcoin sell-off, which characterized much of the week, seems to be subsiding, as BTC has made a rebound into the $80,000 range, reaching an intra-day peak of $85,120.
Some traders believe that Bitcoin (BTC) was primed for a bounce due to its technical indicators being significantly oversold. However, those sharing this outlook caution that after bids are met near recent lows, if new buyers do not maintain the momentum or negative macroeconomic news resurfaces, BTC may revisit its recent lows.
JJ, head of options and crypto trading at HighStrike, expressed a different perspective, observing that “Coinbase spot bids” were “filled,” signaling the “first instance of bids outweighing asks since the September bottom at $52,000.”
Despite the short-term fluctuations in Bitcoin’s price, many analysts assert that historical trends suggest the recent downturn presents an excellent buying opportunity.
On X, Wintermute trader Jake O remarked,
“For anyone with a long-term commitment to the space, the current disparity between positioning/sentiment and fundamentals appears more favorable than ever. The situation feels reminiscent of August 2024 when the spot dipped below $50K amid massive liquidations, and I anticipate significant upside trading over the next few sessions.”
From a technical standpoint, chartered market analyst Aksel Kibar characterized Bitcoin’s movement through the $78,000 level as a “sharp retest” but refrained from declaring whether a price bottom had been confirmed.
Momentum and technical traders should be aware that Bitcoin’s daily RSI remains deeply in the oversold zone. Despite today’s strong rebound, the daily candlestick pattern continues to show lower highs and lower lows. A failure to establish a daily closing candlestick that creates a higher high could indicate that the downtrend is not yet finished.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risks, and readers should conduct their own research before making any decisions.
