The Price of Bitcoin Has Rebounded – So What’s Next?

 

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The price of Bitcoin initially stabilized near the 7,500 level after dipping into the 6,500 area earlier this week. As we wrap up November, where will Bitcoin prices go from here? While altcoins also have shown signs of recovery, what does this mean for the “Alt Season” believers?

Bitcoin: Short Term Cautiously Optimistic, Medium Term Still Cloudy 

The price of Bitcoin has initially recovered from the November low of $6,513, but the short-term and medium-term outlooks of the leading cryptocurrency could be two different pictures. On the short-term front, preliminary data shows that market sentiment has turned slightly positive alongside the price rebound.

But the Crypto Fear & Greed Index jumped, which jumped from 17 (extreme fear) to 32 on September 28, suggesting market participants eased some of their worries as the price stabilized, is still in the “Fear” zone.

Figure 1: Crypto Fear & Greed Index (Source: Alternative.me)
We’ve also seen preliminary recovery signals, but the rebound could soon be tested again, and the coming days could be key to determine if there’s a true reversal or just a short-lived rally.Figure 2a shows BTCUSDT has initially formed an uptrend on a 3-hour chart (red channel). The rebound hit the upper end of the channel, which is also near the major resistance line since late October (yellow line).
Both the ultimate oscillator and RSI have produced some higher highs, suggesting upside momentum has been building up. From here, two scenarios could happen. 1) The 3-hour chart could first find the bottom support of the latest uptrend before retesting the October resistance, given that the pair must produce a higher low. 2) The pair consolidates at current levels until the momentum fades. If seen, the breaking of the lower end of the uptrend could be the first warning sign of further corrections. If we are going to begin to see a 3-hour upturn, as is our bias, it would further…

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