Bitcoin Ripe for a Correction: Bulls Need to Hold Above $36,500 to Target $48,000
Closing November with an 8.86% increase in value, Bitcoin has sustained its upward trend for the past two months.
Throughout 2023, the cryptocurrency has been moving within a rising channel. In the second half of November, it reached the upper band of this channel. While facing some resistance around the $38,000 mark, Bitcoin found support at the $36,500 level in the lower region. A closer look at the support zone reveals that it aligns with Fib 0.382, derived from the bear market's downward trend.
As long as Bitcoin maintains support around $36,500, it is likely to continue its movement towards the next resistance zone, targeting $42,000 to $48,000. The cryptocurrency encountered some difficulty crossing the upper channel border but has continued to move along this border, sustained by demand from the lower region.
On the weekly chart, the steep acceleration of the exponential moving average values in the last month remains valid as a technical argument supporting the upward movement. However, in the long-term outlook, the fact that the Stochastic RSI remains horizontal at the top of the overbought zone can be considered a warning sign.
At this point, the $36,500 support for Bitcoin becomes important once again. If buyers manage to hold the cryptocurrency price at this level on possible pullbacks, we may see the energy of the Stochastic RSI drop and exit overbought conditions. Otherwise, if the support level is lost, the decline is likely to continue until the indicator moves down to the sell zone.
In the event of a possible correction, a retracement to the $ 34,000 levels, which coincides with the middle line of the channel, may be seen. Subsequently, there is a possibility that the downward momentum may continue
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