Blocksmith Says: Don’t Be Fooled By BTC’s Oversold Bounce

16 May 2022

The oversold bounce at longer term support still does not have upside follow through. This is not unique to Bitcoin and we are seeing pretty much the same technical profile across the major markets’ equity indices as well as global tech indices.  

For now, there is insufficient evidence to place a large bet on Bitcoin reversing up. As mentioned in the last note, there is very likely to be a pullback at the January low level (US$32,970), where support becomes resistance. What we need to see is price escape higher from this bottom range and for this to become a new area of key support..  We also need to see a resumption in risk on sentiment across the macro landscape.   

Blockhead Team
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