Bitcoin Consolidates Above $90,000 Amid Risk of Price Drop
Bitcoin (BTC) has consolidated above the $90,000 support zone for ten days, reaching an all-time high (ATH) of $99,645 about a week ago. The cryptocurrency has since closed below a short-term downtrend line, indicating potential risks for a drop to two-week lows.
Bitcoin Faces ‘Moment Of Truth’
Bitcoin experienced significant growth, rising over 47% from its monthly opening to its latest ATH. Since November 18, BTC has fluctuated within the $90,000-$99,000 range, maintaining support despite recent retracements.
The rally has increased investor optimism about reaching the $100,000 milestone this month, although resistance from a Lower High trendline has persisted for the last week.
Analyst Rekt Capital noted that Bitcoin has been closing daily below a one-week Lower High trendline. A daily close above this level could propel BTC toward the $100,000 mark; however, continued closures below it may lead to further rejection at the resistance. After hitting $97,000, BTC closed around $95,300 for the seventh consecutive day, requiring a Thursday close above $97,000 to break out from the trendline.
Rekt Capital cautioned that the trendline remains a potential rejection point for Bitcoin as long as it acts as resistance, which could result in lower price ranges.
November To Close With A Near 40% Rally
Analyst Ali Martinez identified a key demand zone for Bitcoin at $93,580, where 667,000 addresses acquired nearly 504,000 BTC. He emphasized the importance of maintaining prices above this level to prevent sell-offs from these holders.
Martinez also highlighted a significant resistance level at $96,614, where 155,000 addresses purchased 297,000 BTC. He suggested that BTC might experience a bounce towards the highs due to Thanksgiving Day, noting past volatility during this holiday, including a notable 17% price drop in 2020.
According to Martinez, Bitcoin is currently moving within a one-day bullish falling wedge, retesting the lower range as support. A successful breakout could lead to a rebound to $99,000.
Currently, BTC shows a 36.6% monthly return and has the potential for further gains in the final days of November. This month is poised to be the second-best of the year, setting the stage for a potential rally in December.
As of now, BTC is trading at $95,135, reflecting a 1% decline over the last 24 hours.
