News & Analysis
News & Analysis

Short-term buying opportunity on Bitcoin

21 November 2022 By Adam Kahlberg


Bitcoin has recently tested the lows of its price range that it reached in the immediate aftermath of the FTX crisis. A long opportunity has been brought about after price bounced off these lows near $15,863. The hourly chart shows a potential good risk reward entry. The trigger for the entry is not just the fact that the price has bounced off the support zone but is also the strong bullish candle stick at the support level.

The selling was absorbed at the support zone by the buyers and could not close below the wicks of either candle as seen by the length of the wicks. Furthermore, the above average volume for these candles indicated that the selling was exhausted and that the buyers were willing to take on the supply. For this bounce to continue, a strong green candle that closes above the opening price of most recent red candlestick will hopefully support the breakout at $16,204. As seen on the chart, an obvious target is the $17,000 level which is the top of the recent price range.

The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.