BTC/USD Hammer Candle Meets Nvidia Earnings

• Hammer candle prints at $92,000
• RSI oversold, countertrend long possible
• Nvidia earnings could sway price
• Upside targets: $96k, $99k

Summary

BTC/USD printed a hammer candle at $92,000, a level that has attracted buyers in the past. Oversold RSI adds to the potential for countertrend long trades, particularly with Nvidia’s earnings approaching, given BTC’s strong correlation with Nasdaq 100 futures. Momentum remains bearish, but the reversal signal combined with Nvidia’s results could spark a near-term bounce, with initial upside targets around $96,000 and $99,060.

A Reliable Reversal Signal?

Granted, it could easily be seen as catching a falling knife or merely position squaring ahead of a key event, but the hammer candle that printed on the BTC/USD daily chart has me interested, particularly as it came from a zone where it’s attracted buying in the past. It makes me wonder whether we’ve seen the lows for now, opening the door for countertrend long setups in the near term.

Source: TradingView

For one, BTC/USD has a decent track record for delivering reliable bullish and bearish reversal signals. The shooting star candle on 6 October kicked the bearish move off, with a bearish engulfing on 11 November coinciding with the resumption of the bear trend following a tepid bounce. And that’s only the signals we’ve seen recently, with many others proving to be prescient earlier in the year.

Secondly, the dip and reversal from beneath $92,000 is noteworthy given price action seen around the level over the past year. There were constant dips and bounces from beneath it in late 2024 and early 2025, before it eventually flipped to offering resistance after a successful bearish break in February. Now testing the level again from above, you can’t dismiss the signal entirely.

While momentum indicators remain firmly bearish, favouring selling into strength, with RSI (14) now sitting in oversold territory, there’s grounds for countertrend long trades to be considered for those anticipating a short squeeze.

For now, I’m watching the price action around $92,000 as we move towards the key macro event for the week, Nvidia’s earnings report. With a correlation coefficient of 0.87 with Nasdaq 100 futures over the past fortnight, it suggests how traders respond to the earnings update will likely influence how BTC/USD trades.

Should the price hold $92,000, longs could be set above the level with a stop beneath for protection, targeting either former downtrend support located around $96,000 today or former support at $99,060.

On Nvidia’s earnings report, I don’t think anyone can say with certainty as to what will transpire, other than history suggests the chip giant will likely breeze past top-line revenue forecasts with bullish guidance from CEO Jensen Huang. But that’s essentially consensus, meaning the performance of riskier assets in the aftermath may reflect whether it’s good enough to justify the hype. Sure, the recent pullback has lowered the bar somewhat, but the bar remains incredibly high. If it can impress, bitcoin may well bounce.