Bitcoin (BTC) has started this week with a 6% recovery from Friday’s drop and is attempting to regain key areas that could pave the way for a continuation of the trend. However, some analysts are urging caution as Bitcoin’s next rally could be delayed until December.
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Will Bitcoin remain flat until December?
After the weekend market slump, Bitcoin has recovered to the $110,000 level and is trying to turn this area into support again. In particular, the main cryptocurrency has been trading in the price range of $108,000 to $120,000 since July.
Last week, BTC recorded its second decline below the range lows, dropping to the $103,500 level on Friday. Over the weekend, the cryptocurrency’s price stabilized and regained the $106,000 to $108,000 area.
Currently, Bitcoin has recovered 6.2% from its recent lows and could aim for higher levels in the near term. Analyst Crypto Caleo suggested investors “should be more bullish,” noting that Bitcoin’s multi-year uptrend line is holding as support despite recent retests and overall sentiment becoming bearish.
Similarly, AltCryptoGems’ Sjuul emphasized that despite the current market sentiment, which shows that the Fear and Greed index is still at fear levels, the flagship cryptocurrency is “still fully holding the inverted resistance level” around $108,000 and is holding it as support.
“I don’t know if we should turn bearish here or not. Support is support until it isn’t,” the analyst asserted. Altcoin Sherpa also shared a positive outlook, highlighting that BTC’s chart “doesn’t look too bad when zoomed out” as it remains in the same price range for multiple months and could challenge the $114,000-$115,000 area.
Nevertheless, the analyst cautioned that it may be “too early to actually call it a bullish reversal” and predicted that the cryptocurrency “will see a significant decline over the next 6-8 weeks, staying in the 100,000-115,000 range and hoping for a good December.”
The $114,000-$116,000 area remains key.
Rekt Capital said that as long as the price maintains current levels, it could move into the $114,000 area as significant trends continue across that range and could revisit the highs.
To achieve this, the analyst explained, Bitcoin needs to regain its 21-week exponential moving average (EMA) as support. The EMA was lost after falling below $110,000 at Sunday’s close. The 21-week EMA has served as support during pullbacks since the second half of the second quarter.
He explained that the cycle has been one of a downside excursion, with weekly closes below key levels, successfully reclaiming these levels as support, and positioning for a bearish retest before turning higher. Based on this, “it is not a given that price is rejected from the 21-week EMA.”
The analyst also shared his outlook for BTC’s range on a monthly time frame, which has remained solid since July with the tops above the range highs and the bottoms below the range lows.
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“As part of this consolidation, there may be a potential downside high developing that has not yet consolidated. We will know more in the upcoming monthly closes as to whether it actually becomes resistance.”
Recto Capital concluded that a potential setup is invalidated if the monthly close is above the lower high, and that Bitcoin is in a range breakout position if it closes above the range’s high resistance line, “especially if there is a retest of $116,000 to new support after the November breakout.”
As of this writing, Bitcoin is trading at $110,850, up 2% on a daily basis.
Featured image from Unsplash.com, chart from TradingView.com
