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bitcoin (btc) has been consolidating above the $90,000 support zone for the past ten days, reaching its last all-time high (ATH) of $99,645 about a week ago. The cryptocurrency has since closed below a short-term downtrend line, failing to break above it and potentially risking falling to two-week lows.
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bitcoin faces 'moment of truth'
bitcoin is having one of the best months in recent cryptocurrency history, jumping over 47% from its monthly open to its latest ATH. Since November 18, btc has been moving within the price range of $90,000 to $99,000, staying above the lower range zone despite recent pullbacks.
After breaking above the $99,000 level twice, the ongoing rally has fueled investor optimism about reaching the $100,000 milestone this month. However, the flagship cryptocurrency has faced rejection from a lower-high resistance line over the past week.
crypto Analyst Rekt Capital <a target="_blank" href="https://x.com/rektcapital/status/1862157787993616460″ target=”_blank” rel=”nofollow”>pointed out that bitcoin has been closing daily below a one-week Lower High trend line. For the analyst, this resistance marks a “moment of truth”, as a daily close above could send btc towards the $100,000 mark.
However, if you continue to close below it, you risk “probably rejecting trendline resistance once again.” Despite hitting the $97,000 mark yesterday, btc closed Wednesday around $95,300 for the seventh day. bitcoin must close above the $97,000 level on Thursday to break out of the trend line.
The analyst noted that this trend line could be “a rejection point again for bitcoin as long as it is resistance,” adding that investors “could see lower range levels again.”
November will close with a rebound close to 40%
Cryptographic analyst Ali Martínez <a target="_blank" href="https://x.com/ali_charts/status/1862125038192808281″ target=”_blank” rel=”nofollow”>noted That key demand zone for bitcoin is the $93,580 mark, as 667,000 addresses purchased nearly 504,000 btc at this price. Martínez warned that staying above this level “is essential” to prevent these forks from being sold.
Furthermore, the analyst chart <a target="_blank" href="https://x.com/ali_charts/status/1862091820135600292″ target=”_blank” rel=”nofollow”>highlighted that the biggest resistance level ahead is the $96,614 mark, where 155,000 addresses bought 297,000 btc.
Martinez also suggested that btc could bounce to range highs, boosted by Thanksgiving. It is worth noting that over the years, bitcoin has seen violent price swings around this holiday, such as the 2020 “Thanksgiving Day Massacre”, in which btc recorded a price drop. 17% in a matter of hours.
The analyst shared that bitcoin has been moving within a one-day bullish falling wedge, retesting the lower range as support and bouncing in the morning. For him, a successful breakout of this formation could trigger a rebound to $99,000.
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btc currently records a monthly performance of 36.6%, according to data from glass coinwith the potential to see further gains in the last two days of November. However, November will apparently close as the second best month this year, setting the stage for a massive rally in December.
At the time of writing, btc is trading at $95,135, a drop of 1% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
