Bitcoin (BTC) is retesting a key support area after the price fell 5% from recent highs and fell below the $90,000 barrier. Some analysts suggest that the cryptocurrency’s structure remains intact, but warn that if it does not rebound soon, it risks retesting November’s lows.
Related books
Bitcoin retests $88,000 after rejection
On Friday, Bitcoin lost its recently recovered $90,000 level and fell to an important level. support Area before stabilization. The flagship cryptocurrency is attempting to recover from a market correction in November that saw its price drop to a seven-month low of $80,600.
Since hitting local lows two weeks ago, the cryptocurrency has been trading within a macro-re-accumulation range of $82,000 to $93,500, and is on the verge of breaking out of this zone, reaching a multi-week high of $94,150 on Wednesday.
However, as the first week of December drew to a close, BTC once again lost the upper bound of the local range, falling below the monthly opening price and reaching support at $88,000.
Amid the decline, analyst Ted Pillows said: noticed He said BTC is struggling to regain the $94,000 resistance, adding that the price “hopes to drop here before attempting another breakout.” Therefore, a rebound from the $88,000 to $89,000 support zone is likely, he suggested.
altcoin sherpa affirmed The ongoing retest will see whether the recent rally is “simply a result of lower highs and lower prices, or whether there is actually room for a rebound to around 100,000.”
Analysts outlined two potential outcomes. In the first scenario, the flagship cryptocurrency will return to the $87,000-$89,000 area and rebound above the $93,000-$94,000 resistance level.
In the second scenario, Bitcoin will continue to move sideways below the local currency. resistance It could eventually fall to November’s lows, and even below that. Analysis shows that major cryptocurrencies need to bottom out soon or risk a second outcome.
BTC shows a shallow downward trend
So analyst Rekt Capital pointed We see that Bitcoin continues to face rejection from the higher resistance range. But he doesn’t think investors need to worry unless the rebound is as big as in the past.
“If the rejection is shallower than the previous two, this resistance will continue to weaken until it is finally broken,” he explained, adding, “As long as this weakening continues, BTC should be able to eventually break through this resistance over time and challenge the multi-week downtrend mentioned above.”
Earlier this week, analysts affirmed As long as Bitcoin closes the week above the range low, BTC’s consolidation structure will remain in place. He also noted that the macro downtrend, which has “defined resistance throughout this stage of the cycle,” remains a key structural barrier and a level to be broken.
Related books
As prices stabilized in the $88,500 to $89,350 range, analysts said: added Today’s retracement “continues to be a shallower pullback than the previous two,” so the range’s “‘shallow retrace’ trend” remains intact, he said.
He noted that Bitcoin could technically fall to the rising two-week support trend line or even reach the $86,000 level, resulting in a shallower correction than the recent 10% decline.
At the time of writing, Bitcoin is trading at $89,400, down 2.9% on a daily basis.
Featured image from Unsplash.com, chart from TradingView.com
