Bitcoin (BTC) sell-off appears to be easing, with BTC price making a recovery back in the $80,000 range

Some traders believe that Bitcoin (BTC) was overdue for a bounce, given how deeply oversold some of its technical indicators had become.

Bitcoin price rose sharply on Wednesday to reach an intra-day high at $85,120. Some traders believe that Bitcoin (BTC) was overdue for a bounce, given how deeply oversold some of its technical indicators had become.

Those holding that belief warn that once bids are filled near the recent lows, if new buyers fail to sustain the momentum or negative macroeconomic newsflow resumes, BTC is likely to revisit its recent lows.

However, taking a different view, HighStrike head of options and crypto trading JJ noted that “Coinbase spot bids” were “filled, representing the “first flip of bids outweighing asks now since the September bottom at $52,000.”

Bitcoin bids at Coinbase filled. Source: JJ the Janitor

Regardless of the short-term price action from Bitcoin, many analysts continue to say that historical data highlights the recent drawdown as a prime purchasing opportunity.

On X, Wintermute trader Jake O said,

Crypto Fear & Greed Index. Source: Jake O / X

From a technical perspective, chartered market analyst Aksel Kibar described Bitcoin’s sweep of the $78,000 level as a “sharp retest” but declined to say whether a price bottom had been achieved.

Bitcoin 1-day chart. Source: A

Momentum and technical traders should note that Bitcoin daily RSI remains in deeply oversold territory, and despite the strength of today’s rebound, the daily candlestick pattern of lower highs and lower lows. Failure to establish a daily close candlestick that generates a higher high could be an early sign that the downtrend is not yet complete.