Monday, May 23, 2022

Bitcoin dips below $47K but one trader is eyeing ‘solid risk/reward’ for longing BTC now


Bitcoin (BTC) added to its losses on Dec. 29 with a recent tumble briefly taking BTC/USD under $46,600.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

RSI flashes “oversold”

Knowledge from Cointelegraph Markets Pro and TradingView confirmed the pair giving up floor previous to the Wall St. open to extend its 48-hour correction to 10.4%.

The newest transfer in a well-recognized sample of conduct, the market confirmed that the vary through which Bitcoin has acted in December stays very a lot in play. 

As market members resigned themselves to a lackluster finish to the yr, fashionable dealer and analyst Scott Melker seen a doable shopping for alternative at present ranges on quick timeframes.

Bitcoin’s relative power index (RSI), along with different bullish indicators, had entered “oversold” territory through the dip in what’s a classic buy-in trigger.

“If you’re buying and selling small time frames, there’s very strong threat/reward of punting longs right here,” he wrote in certainly one of a number of tweets in regards to the alternative.

“RSI oversold, hourly about to make a bull div, on the vary EQ, low conviction promoting on minimal quantity.”

BTC/USD subsequently bounced from the lows to return above $47,000.

Melker had beforehand defended the retracement from $52,000, arguing that “nothing had modified” general for rangebound Bitcoin.

Brandt: Panic sell-off “nonetheless but to occur”

Not everybody, nonetheless, was optimistic.

Associated: ‘Net neutral’ — Rising Bitcoin exchange balances could be due to Huobi Chinese user block

Peter Brandt, the veteran dealer who earlier within the week had warned of “pretend breakouts” in thin-liquidity markets over the vacations, now eyed room for additional draw back.

A part of “panic capitulation” worse than early December showing is nonetheless a subject of debate.

Retail buyers, others argued, had been doubtless not vulnerable to mass promoting at present ranges, pointing to increases in small-balance wallets and evidence of strong hodl behavior all year long.