Bitcoin (BTC), which hit multi-day highs at $58,300 overnight through Nov. 25, was a result of investors betting on a lower likelihood of a major price drop.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD was above $57,000 on Thursday. This resulted in a lower daily chart.
Analyst and trader Rekt Capital believes this indicates support “solidifying” at current levels with the possibility of a more convincing trend reverse.
He stated that Bitcoin had “certainly solidified its support there, producing a lengthy downside wick into bottom of the blackwedging structure and rebounding strongly,” to his Twitter followers.
“Also todays candlestick forms a Higher Low relative yesterdays Daily candle.”
BTC/USD 1-day annotated candles chart (Coinbase). Source: Rekt Capital/Twitter
QCP Capital, a crypto trading company, shared the same sentiment and summarized the likely short term outcomes on Wednesday.
“So far, selling pressure has effectively capped any rally. It is unclear if it will cause a downside break, it said in a market update sent to Telegram subscribers.
“We believe that the market will continue to consolidate rather than fall lower.”
Cointelegraph reported that mixed signals were being sent by exchanges this week over selling pressure. Large inflows and large outflows indicate a highly active market.
However, volatility is still at its lowest level in more than half a year, thereby sustaining relatively stable prices.
Chart of Bitcoin volatility. Source: Buy Bitcoin Worldwide
Limp altcoins supported by Solana support test
Binance Coin (BNB), which is now the only top-ranked cryptocurrency by market capitalization, grew 8% each week to become the sole standout.
Related: Bitcoin price metric requires astrong response as $56K BTC begins to lookseriously low
Other tokens fell or suffered minor losses, led By Solana (SOL), who lost nearly 7% to $200.
SOL/USD 1-hour candlechart (FTX). Source: TradingView
Pentoshi, a fellow analyst and trader, believes that macro factors could cause a more definitive stalling in the crypto bull market.
He said, “The most funny ending to a cryptocurrency bull market would be double-digit inflation and people not understanding how that can be bearish on risk on assets,” in a Twitter thread that he started on Nov. 16.
“The very thing people cheer on at the expense others can be the exact thing that ends this cycle.”
He reiterated Thursday that he expects a deflationary spell in 2022.