Bitcoin is finding buyers after hitting a six-month low

Yesterday, Bitcoin was gripped by an all-out bear attack, posting 2022 and six-month lows. That changed towards the end of the US trading session as buyers stepped in to propel Bitcoin price higher to close in the green for the second straight day.

Buyers come in

Bears have dominated bitcoin price action so far. BTC is down almost 24% since last Monday’s open, with the biggest loss coming on Friday with a sharp 13% drop. Sunday’s rally is in doubt as sellers continue to push BTC lower until it is rejected by a wave of buying.

At the time of hitting the 88.2% Fib retracement level, bitcoin price immediately reversed the trend. From an oscillator perspective, BTC is neutral on the Relative Strength Index (RSI) but extremely oversold on the Optex band oscillator. This is the first time since July 2021 that BTC has reached a weekly oversold level on the Optex band oscillator – before rallying to a new all-time high.

Despite ATH’s 52% drop, the damage to bitcoin price is still less than April-June 2021, when the price plummeted nearly 56%.

BTC/USD weekly Ichimoku Kinko Hyo chart

BTC needs to close at or above the $37,300 area this week. If this fails, BTC will enter the ideal Ichimoku breakout setup – the most desirable short-term setup in the Ichimoku-Kinko-Hyo system.

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