VOT Research Desk
November 28 saw a sharp decline in the price of bitcoin following a consolidating weekend.
This pessimistic view comes as significant demonstrations break out in China over Covid restrictions. Investors appear to be moving into a risk-off mentality as a result of the escalating upheaval in the east, driving safe-haven assets like the US Dollar, Treasuries, and the Yen higher.
Since the price of Bitcoin and the stock markets have such a strong correlation, BTC is still a hazardous asset, which accounts for its recent decline.
Despite this slight setback, there is still hope that the major cryptocurrency will recover.
A break through the $17,593 barrier might, in the short- to medium-term, pave the way for Bitcoin’s price to retest $19,011, the level with the biggest volume of activity over the previous 11 months.
The general momentum is still positive, as evidenced by the Relative Strength Index, which has been producing higher lows since November 9.
On the other side, the first indication of weakness will be if Bitcoin price fails to maintain above the $15,700 support level.
The bullish thesis will be disproved if this level is broken, followed by a four-hour candlestick closure below $15,443 without a swift recovery.
In this scenario, the price of bitcoin might investigate the prospect of returning to the high timeframe support level around $13,575.
