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Bitcoin (BTC) has been consolidating above the $90,000 support zone over the past ten days, reaching its latest all-time high (ATH) of $99,645 about a week ago. Since then, the cryptocurrency has closed below a short-term downtrend line but has failed to break above it and may risk a decline to two-week lows.
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Bitcoin stands for ‘Moment of truth’
Bitcoin is having one of the best months in recent cryptocurrency history, jumping over 47% between the monthly open and the final ATH. Since November 18, BTC has been trading within the $90,000-$99,000 price range, remaining above the lower range despite recent retracements.
After breaching the $99,000 level twice, the continued rally has fueled investor optimism about making the potential run to the $100,000 mark this month. However, the flagship crypto was rejected by a lower resistance line this past week.
Crypto analyst Rekt Capital pointed out that Bitcoin closes below the one-week Lower High trendline daily. For the analyst, this resistance marks a “moment of truth” as a daily close above it could send BTC towards $100,000.
However, if you continue to close below that, you risk another “likely rejection of trendline resistance.” Despite hitting the $97,000 mark yesterday, BTC closed around $95,300 for a seventh day on Wednesday. Bitcoin needs to close above the $97,000 level on Thursday to break out of the trendline.
The analyst noted that this trendline “could be another rejection point for Bitcoin as long as it is a resistance,” adding that investors “could see lower levels again.”
November ends with a rally of almost 40%
Crypto analyst Ali Martinez noted that one key demand zone for Bitcoin is around $93,580, as 667,000 addresses bought almost 504,000 BTC at this price. Martinez warned that staying above this level “is a must” to prevent these holders from selling their shares.
In addition, the analyst’s chart marked that the biggest resistance level ahead is the $96,614 mark, where 155,000 recipients bought 297,000 BTC.
Martinez also suggested that BTC could bounce to the range highs fueled by Thanksgiving Day. It is worth noting that Bitcoin has recorded violent price swings around this holiday over the years, such as the “Thanksgiving Day Massacre” of 2020, where BTC recorded a 17% price drop within hours.
The analyst said Bitcoin has moved within a one-day bullish bearish wedge, retesting the lower range as support and bouncing in the morning. According to him, a successful breakout from this formation could trigger a recovery to $99,000.
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According to BTC data, BTC is currently posting a monthly return of 36.6% Mint glasswith the potential to see further gains in the last two days of November. Nevertheless, November will ostensibly close as the second-best month this year, paving the way for a huge rally in December.
At the time of writing, BTC is trading at $95,135, down 1% in the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com