The price action of Bitcoin is quite interesting at the moment. After this week’s selloff we are seeing a very oversold condition work its way out at the moment.
Does this mean we are done going down? Nope. Does it mean that this can be a bottom? Maybe. Really there is not much clarity, but I did find something interesting.
On the daily chart there were a couple of small reversals and consolidations around the 16,500 area. I mentioned this on the Leofinance AMA on Nov 8th when asked where I may be a buyer.
Well, I got my opportunity to do some initial buying
To Support or Not to Support, That is The Question
Looking at the chart above you can see I highlighted two points on the chart. They are the price action points that made me notice the 16,500 area. They honestly just look like hiccups in the grand scheme, but they still had potential to come into play.
If you see the red dotted line, which is the current price of bitcoin it is right in that area, this is after dipping into the high 15Ks.
The chances of the area becoming a real support level I think are less than 50/50 but ya never know. Either way, it made for a decent buy price in the overall grand scheme as I leg into bitcoin over time.