Bitcoin rebounds from $16,200 but stuck between stacks of critical support and resistance areas

John Isige Bitcoin News published November 27, 2020 | modified November 27, 2020

BTC-long-short-positions

Bitcoin rebounds from $16,200 but stuck between stacks of critical support and resistance areas

  • Bitcoin called out for more buy orders after diving from the yearly high at $19,500 to the support at $16,200.
  • BTC/USD eyes recovery to the 50 SMA before making the final leg up to the all-time high at $20,000.

Bitcoin lost a significant amount of its value on Thursday during the Asian session. The losses were connected to the funds’ exodus from OKEx cryptocurrency exchange after the withdrawal service was resumed for digital assets and cryptocurrencies. Investors rushed to remove their funds from the exchange, perhaps to cash out and take profit after not having access for several weeks.

However, Bitcoin and the crypto market had been on the verge of a pullback even without the OKEx incident. Note that the cryptocurrency fear and greed index (CFGI) had hit a record high (95), suggesting that a correction was imminent.

Bitcoin spiraled under several key levels including the 50 Simple Moving Average on the 4-hour chart, the buyer congestion at $18,000, the 100 SMA, and $16,500. The selling pressure was enough to overcome buyer concentration in these zones. The only formidable support lies at $16,200, which gave bulls some semblance of balance for the ongoing recovery.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Meanwhile, Bitcoin is trading at $17,400 after a considerable recovery. The flagship cryptocurrency has also stepped above the 100 SMA and is now building enough volume for gains above $18,000 and the 50 SMA.

Trading above the 50 SMA would be key to the cryptocurrency because it’s likely to call for more buy orders as bulls get back their confidence to hit a new all-time high. For now, resistance and support come in almost equal measure, therefore it’s probable that Bitcoin may enter into consolidation before a breakout.

It is worth mentioning that closing the day under the 100 SMA may see BTC embark on the downtrend back to the weekly support at $16,200. If the declines stretched further, the 200 SMA at $15,700 is in line to provide support and avert losses to $15,000.

Bitcoin intraday levels

Spot rate: $17,400

Relative change: 266

Percentage change: 1.5%

Trend: Bullish

Volatility: Expanding

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