News & Analysis
News & Analysis

Short-term buying opportunity on Bitcoin

21 November 2022 By GO Markets

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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 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.

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Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.