BTC – Bounces Off SMA

On November 15, 2021, when Bitcoin was ranging at above $65,000, we predicted a correction to the $53,000 area, and the price was hit yesterday. Later on, on 26 November 26, 2021, when Bitcoin was nearing $54,000, we signaled that the downtrend is exhausting as Bitcoin has entered an oversold situation and today it gained more than 5% and tested the $58000 mark. Again, the 1-hour chart exhibits an oversold correction and we don’t mind if Bitcoin falls again to $56,000 – that’s normal and healthy to attract bids. We have short term resistance here at fib 1.272 near $59,900 and fib 1.618 near the $61,100 mark. If Bitcoin keeps ranging in the same area, it might turn into a flag pattern which would be bullish.