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Bitcoin (BTC) has been consolidating above the $90,000 support zone over the past ten days, reaching its last all-time high (ATH) of $99,645 about a week ago. Since then, the cryptocurrency has closed below a short-term downtrend line, failing to break above it and potentially risking a fall to a two-week low.
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Bitcoin faces a “moment of truth”
Bitcoin is having one of the best months in recent cryptocurrency history, surging more than 47% from its monthly open to its latest ATH. Since November 18, BTC has been trading in the $90,000-$99,000 price range, holding above the lowest zone despite recent retracements.
After surpassing the $99,000 level twice, the ongoing rally has fueled investor optimism that the potential $100,000 mark could be reached this month. However, the flagship crypto faced rejection from a lower and upper resistance line last week.
Crypto analyst Rekt Capital pointed out that Bitcoin closed daily below a one-week high lower trendline. For the analyst, this resistance marks a “moment of truth”, as a daily close above could propel BTC towards the $100,000 mark.
However, continuing to close below this level risks leading to a “likely rejection of trendline resistance” 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 trendline.
The analyst noted that this trendline could be “again a rejection point for Bitcoin as long as it is resistance,” adding that investors “could see lower levels again.”
November will close with a rally of almost 40%
Crypto analyst Ali Martinez noted that a key demand area for Bitcoin is the $93,580 mark, as 667,000 addresses purchased nearly 504,000 BTC at that price. Martinez warned that staying above this level “is essential” to prevent these holders from selling out.
Additionally, the analyst’s chart highlighted that the biggest resistance level ahead is the $96,614 mark, where 155,000 people purchased 297,000 BTC.
Martinez also suggested that BTC could bounce back to the highs, fueled by Thanksgiving Day. It’s worth noting that over the years, Bitcoin has seen violent price swings around this holiday, such as the “Thanksgiving Massacre” of 2020, which saw BTC record a 17% price drop in a matter of hours.
The analyst shared that Bitcoin was trading in a one-day bullish descending wedge, retesting the lower range as support and rebounding in the morning. For him, a successful breakout of this formation could trigger a rebound to $99,000.
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BTC is currently seeing a monthly return of 36.6%, according to Coinglass data, with the possibility of seeing further gains in the last two days of November. Nonetheless, November appears to be the second best month of the year, paving the way for a massive recovery in December.
At the time of writing, BTC is trading at $95,135, down 1% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
