Bitcoin (BTC) Attracts Buyers despite New 6-Month Low

Briefly –

  • Bitcoin saw a nearly 10% drop on Monday but seems ready to recover the accrued losses.
  • Dip-buying evidence grows, welcoming a potential relief rally.
  • An upward corrective move start, though downward risks remain.

Bitcoin saw massive bearishness on Monday, forming new 6-month and 2022 lows. However, the narrative shifted as the New York equity market session ended as buyers joined, pushing BTC price highs for another close in the green zone.

BTC Attracts Buyers at Multi-Month Lows

Bitcoin price has flashed bearish dominance lately, losing nearly 24% since last week. Meanwhile, the world’s leading crypto suffered a massive crash on Friday, losing 13% of its price. Sunday’s recovery remained vulnerable as sellers dominated, pushing BTC lower until buying influx emerged.

Nevertheless, Bitcoin price witnessed a trend reversal after hitting 88.2% FIB retracement. Meanwhile, the oscillator suggests BTC is neutral according to the RSI but harshly oversold within the Optex Band. Remember, BTC touched the weekly oversold zone in Optex Bands for the first time since 2021 July – when the move preceded a surge towards new ATHs.

Though Bitcoin stays nearly 50% lower from its record peaks, the latest losses by Bitcoin remains lower than the one seen in 2021 April – June. For now, BTC hovers 52% down from its ATH. Meanwhile, the 2021 April-June crash had Bitcoin 56% below its highest price levels.

Meanwhile, buyers should push for a weekly close beyond $37,300. Failure will see Bitcoin dipping inside the Ideal Bearish Ichimoku pattern – the most lucrative short pattern in Ichimoku Kinko Hyo. Such a development will have BTC in conditions never seen since the 2020 March COVID-crash and the 2nd time since 2018 May.

Bitcoin seems ready to recover the losses suffered over the latest downfall. The crypto’s relief rally reflects dip-buying actions. Nevertheless, the leading crypto by value exhibits downside risks.

While publishing this analysis, the crypto industry highlights bullishness. The total crypto market capitalization saw a 1.78% surge within the past day, hovering at $1.63 trillion during this writing. Moreover, BTC trades with a 3.15% 24hr gain at $36,250.73.