Bitcoin Could Drop Below $90,000 If It Doesn’t Break This Level, Rally On Pause?
Bitcoin (BTC) has been consolidating above the $90,000 support zone for the last ten days, reaching its latest 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 drop to two-week lows.
Bitcoin Faces ‘Moment Of Truth’
Bitcoin is having one of the best months in the cryptocurrency’s recent history, jumping over 47% from its monthly opening to its latest ATH. Since November 18, BTC has been moving within the $90,000-$99,000 price range, holding above the lowest range zone despite the recent retraces.
After surpassing the $99,000 level twice, the ongoing rally has fueled investors’ optimism about achieving the potential run to the $100,000 milestone this month. However, the flagship crypto has been facing rejection from a Lower High resistance line for the last week.
Crypto analyst Rekt Capital pointed out that Bitcoin has been closing daily below a one-week Lower High trendline. To the analyst, this resistance marks a “moment of truth” as a daily close above it could send BTC toward the $100,000 mark.
However, continuing to close below it risks a “likely reject at the trendline resistance once again.” Despite hitting the $97,000 mark yesterday, BTC closed Wednesday around $95,300 for the seventh day. Bitcoin must close Thursday above the $97,000 level to break out from the trendline.
The analyst noted that this trendline could be “a point of rejection again for Bitcoin For as long as it is a resistance,” adding that investors “could see lower range levels again.”
November To Close With A Near 40% Rally
Crypto analyst Ali Martinez noted that one key demand zone for Bitcoin is the $93,580 mark, as 667,000 addresses bought nearly 504,000 BTC at this price. Martinez warned that staying above this level “is a must” to prevent these holders from selling off.
Moreover, the analyst’s chart highlighted that the biggest resistance level ahead is the $96,614 mark, where 155,000 addressed purchased 297,000 BTC.
Martinez also suggested BTC could bounce to the range highs, fueled by Thanksgiving Day. It’s worth noting that, throughout the years, Bitcoin has recorded violent price swings around this holiday, like 2020’s “Thanksgiving Day Massacre,” which saw BTC record a 17% price drop within hours.
The analyst shared that Bitcoin has been moving within a one-day bullish falling wedge, retesting the lower range as support and bouncing in the morning. To him, a successful breakout from this formation could trigger a rebound to $99,000.
BTC currently records a 36.6% monthly return, according to data from Coinglass, with the potential to see further gains in November’s last two days. Nonetheless, November will seemingly close as this year’s second-best month, setting the stage for a massive rally in December.
As of this writing, BTC is trading at $95,135, a 1% drop in the last 24 hours.
