Bitcoin Could Drop Below $90,000 If It Doesn’t Break This Level
Bitcoin (BTC) has been consolidating above the $90,000 support area for the past ten days, having reached its latest all-time high (ATH) of $99,645 about a week ago. The cryptocurrency has since closed below the short-term downtrend line, failing to break above it and threatening to drop to two-week lows.
Related reading
Bitcoin faces a ‘moment of truth’
Bitcoin is one of the best months In the cryptocurrency’s recent history, the price has increased by more than 47% from the monthly opening price to the latest ATH. BTC has been trading within the $90,000 to $99,000 price range since November 18, remaining above the lowest range area despite the recent pullback.
After breaching the $99,000 level twice, the continued gains have stoked investor optimism for a breakthrough to the $100,000 milestone this month. However, the flagship cryptocurrency has been facing rejection from the lower high resistance line over the last week.
Cryptocurrency Analyst Rekt Capital point out Bitcoin’s daily close was below the one-week lower high trendline. For analysts, this resistance marks a “critical moment” as a daily close above this resistance could push BTC towards the $100,000 mark.
However, the risk of a continued close below that level “could be another rejection of trendline resistance.” Despite hitting the $97,000 mark yesterday, BTC closed near $95,300 for the seventh consecutive day on Wednesday. Bitcoin must close above $97,000 on Thursday to break above the trend line.
Analysts pointed out that this trend line “As long as Bitcoin is resistance, it could become a rejection point again,” adding that investors “could see lower range levels again.”
November closed up nearly 40%
Cryptocurrency Analyst Ali Martinez famous A key demand area for Bitcoin was the $93,580 mark, as 667,000 addresses purchased nearly 504,000 BTC at this price. Martinez warned that staying above this level “is a must” to prevent these holders from selling.
Additionally, analyst charts Highlight The biggest resistance going forward is the $96,614 mark, where 155,000 people bought 297,000 BTC.
Martinez also said that Bitcoin could rebound to range highs, driven by Thanksgiving. It’s worth noting that over the years, Bitcoin has experienced wild price swings around this holiday, like 2020’s “thanksgiving massacre”, the price of Bitcoin fell by 17% in a few hours.
The analyst said that Bitcoin has been moving within a one-day bullish falling wedge, retesting support in the lower range and bouncing back in the morning. For him, a successful breakout of the pattern could trigger a rally to $99,000.
Related reading
According to data, BTC’s current monthly return is 36.6% coin glassit is possible to see further gains in the last two days of November. Nonetheless, November looks set to be the second-best month of the year, setting the stage for a massive rebound in December.
As of this writing, BTC is trading at $95,135, down 1% in the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
