Bitcoin (BTC) peaked in a few days at $58,300 the night before November 25, as investors bet to reduce the likelihood of further significant price drops.
1 hour BTC/USD light chart (bit print). Source: TradingView
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was above $57,000 on Thursday, hitting a higher low on the daily chart.
This, according to the trader and analyst at Rekt Capital, shows that support is “strengthening” at current levels in hopes of a more convincing trend reversal.
“Bitcoin has definitely cemented its support here, leading to a long week of pulling back at the bottom of the black wedge structure and rebounding strongly,” he told his Twitter followers.
“Also, today’s candle is recording a higher low compared to yesterday’s candles.”
Annotated daily light chart for BTC/USD (Coinbase). Source: Rekt Capital / Twitter
The mood was shared by crypto-trading firm QCP Capital, which outlined possible short-term outcomes on Wednesday.
So far, selling pressure has effectively limited each spike. The question is whether it will lead to a recession, the market said in a message to subscribers of the Telegram channel.
“We are betting that the market will consolidate, not collapse.”
As Cointelegraph reported, exchanges this week gave mixed signals of selling pressure, with significant inflows and outflows pointing to a very active market.
However, volatility remains at its lowest level in more than six months, bolstering a relatively stable price environment.
Bitcoin volatility chart. Source: Buy Bitcoin Worldwide
Limp altcoins led by Solana’s back-testing retest
Among the top 10 cryptocurrencies by market capitalization, Binance Coin (BNB) became the only notable cryptocurrency to gain 8% in a week.
On the subject: Bitcoin pricing needs a “strong reaction” as $56,000 bitcoin starts to appear “very cheap.”
Other coins were unchanged or suffered less losses, led by Solana (SOL), which rose nearly 7% in one day and approached $200.
SOL/USD (FTX) light hourly chart. Source: TradingView
According to other Pentoshi traders and analysts, macroeconomic factors may still lead to a more definite pause in the cryptocurrency race.
“The funniest end to the crypto bull market will be double digit inflation and people who don’t understand why it might be bearish in relation to risk assets,” he commented on his Twitter thread, which originally started on November 16.
“What people invent for others can end this cycle.”
On Thursday, he confirmed the possibility of a downturn in 2022.