Bitcoin dips below $47K but one trader is eyeing ‘solid risk/reward’ for longing BTC now

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Bitcoin (BTC) added to its losses on Dec. 29 with a recent tumble briefly taking BTC/USD under $46,600.

Bitcoin dips below $47K but one trader is eyeing 'solid risk/reward' for longing BTC now
BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

RSI flashes “oversold”

Knowledge from Cointelegraph Markets Pro and TradingView confirmed the pair giving up floor previous to the Wall St. open to extend its 48-hour correction to 10.4%.

The newest transfer in a well-recognized sample of conduct, the market confirmed that the vary during which Bitcoin has acted in December stays very a lot in play. 

As market individuals resigned themselves to a lackluster finish to the yr, fashionable dealer and analyst Scott Melker observed a doable shopping for alternative at present ranges on quick timeframes.

Bitcoin’s relative power index (RSI), along with different bullish indicators, had entered “oversold” territory in the course of the dip in what’s a classic buy-in trigger.

“In case you are buying and selling small time frames, there’s very stable danger/reward of punting longs right here,” he wrote in one in all a number of tweets in regards to the alternative.

“RSI oversold, hourly about to make a bull div, on the vary EQ, low conviction promoting on minimal quantity.”

BTC/USD subsequently bounced from the lows to return above $47,000.

Melker had beforehand defended the retracement from $52,000, arguing that “nothing had modified” general for rangebound Bitcoin.

Brandt: Panic sell-off “nonetheless but to occur”

Not everybody, nevertheless, was optimistic.

Associated: ‘Net neutral’ — Rising Bitcoin exchange balances could be due to Huobi Chinese user block

Peter Brandt, the veteran dealer who earlier within the week had warned of “pretend breakouts” in thin-liquidity markets over the vacations, now eyed room for additional draw back.

A part of “panic capitulation” worse than early December showing is nonetheless a subject of debate.

Retail traders, others argued, have been seemingly not susceptible to mass promoting at present ranges, pointing to increases in small-balance wallets and evidence of strong hodl behavior all year long.