Bitcoin (BTC) has been navigating a period of consolidation above the crucial $90,000 support zone for the past ten days, having recently hit its new all-time high (ATH) of $99,645. Despite this achievement, the cryptocurrency has been unable to sustain a break above a short-term downtrend line, casting doubts about its immediate future and indicating a possible dip to two-week lows.
Bitcoin Faces a Pivotal Moment
This month has been remarkable for Bitcoin, witnessing an impressive surge of over 47% from its opening price to its latest ATH. Since November 18, BTC has been oscillating between $90,000 and $99,000, managing to stay above the lower end of this range even amidst recent pullbacks.
The excitement among investors is palpable, especially after Bitcoin twice breached the $99,000 level. This ongoing rally has sparked hopes of reaching the coveted $100,000 mark within the month. However, Bitcoin is encountering resistance from a Lower High trendline, which has persisted throughout the past week.
According to crypto analyst Rekt Capital, Bitcoin’s inability to close above the one-week Lower High trendline has marked this phase as a “moment of truth.” Closing above this resistance could propel BTC towards the $100,000 milestone. Conversely, a continued failure to breach this line might lead to another rejection, maintaining the status quo. Despite a brief climb to $97,000, BTC closed at approximately $95,300 on Wednesday for the seventh consecutive day. Achieving a close above $97,000 on Thursday is vital for a breakout from the trendline.
November’s Near 40% Rally: A Closer Look
Crypto analyst Ali Martinez highlights the importance of the $93,580 level as a critical demand zone for Bitcoin. At this price, 667,000 addresses purchased nearly 504,000 BTC. Maintaining this level is crucial to prevent these holders from offloading their assets. Furthermore, Martinez points out that the next significant resistance level is at $96,614, where 155,000 addresses acquired 297,000 BTC.
Martinez suggests that BTC could rise to the upper range, potentially buoyed by Thanksgiving Day activities. Historically, Bitcoin has experienced significant price volatility around this holiday, reminiscent of the 2020 “Thanksgiving Day Massacre,” which saw a 17% plunge in BTC’s value in just hours.
The analyst notes that Bitcoin has been exhibiting a one-day bullish falling wedge pattern, consistently testing the lower range as support and bouncing back each morning. A successful breakout from this pattern might pave the way for a rebound to $99,000.
November’s Performance and Future Prospects
According to Coinglass data, BTC currently shows a 36.6% monthly return, with potential for additional gains in the final days of November. Despite this, November is set to be the second-best month of the year, laying the groundwork for a potential surge in December.
At the time of writing, Bitcoin is trading at $95,135, reflecting a 1% decline over the past 24 hours. This performance on the weekly chart provides insights into Bitcoin’s current market dynamics and future potential.
