Bitcoin (BTC) bulls have stabilized the asset’s price above $16,000, extending the asset’s consolidation around the level. Notably, Bitcoin’s chances of rallying have been limited by the coronavirus limits demonstrations in China, which have caused further market instability.
In fact, Kitco News analyst Jim Wyckoff observed on November 28 that Bitcoin bears continue to have a near-term technical edge, with the currency facing a potential decline below $16,000.
“While the BC bulls have steadied prices since they reached a two-year low last week, they are dissatisfied that safe-haven demand has not boosted BC prices in the wake of civil instability in China over the weekend. The BC bears have a technical edge in the short term. However, the current sideways price movement supports bulls somewhat,” he said.
Notably, Bitcoin is still experiencing market-wide consequences from the FTX crypto exchange’s bankruptcy. Intriguingly, the first cryptocurrency continues to be pulled down by the prevalent macroeconomic issues, with the civil unrest events in China offering a bleak market picture.
Analysts predict that the instability in China will strain the supply system, making it difficult to regulate inflation and interest rates.
Around the time of publication, Bitcoin was trading at $16,152, with daily losses of almost 3% as the market encountered renewed selling pressure.
The current decline follows Bitcoin’s consolidation after its two-year low price of about $15,400 last week. For Bitcoin to avoid a further free bottom, the asset’s price must remain above $16,100.
Moreover, crypto trading specialist Michal van de Poppe tweeted on November 28 that Bitcoin has failed to break key resistance levels, indicating that the market might see new lows depending on how the China scenario develops.
In the meanwhile, Bitcoin continues to seek a potential price bottom and prepares to launch a probable rebound aimed at the $18,000 level, which has served as a key support level in recent weeks. According to Finbold, the cycle channel oscillator (CCO), which signals the oversold region and market bottoms for Bitcoin, has reached the bear market bottom in this line.
