Bitcoin (BTC) began the week recovering 6% from Friday’s decline and attempting to reclaim a crucial area that could pave the way for the trend to continue. However, some analysts are advising caution as BTC’s next rally could be delayed until December.
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Will Bitcoin move sideways until December?
After the weekend market slowdown, Bitcoin has rebounded all the way to the $110,000 level and is once again trying to turn this area into support. Notably, the flagship crypto has been trading in the $108,000 to $120,000 price range since July.
Last week, BTC recorded its second decline below the range lows, falling to $103,500 on Friday. Over the weekend, the price of the cryptocurrency stabilized and reclaimed the $106,000-$108,000 zone.
Today, Bitcoin has recovered 6.2% from recent lows and could potentially aim for higher levels in the near term. Crypto analyst Kaleo highlighted that BTC’s multi-year ascending trendline has held as support despite the recent retest and overall sentiment turning bearish, suggesting that investors should “be more optimistic.”
Likewise, AltCryptoGems’ Sjuul pointed out that despite current market sentiment, which shows the Fear and Greed Index remaining at the fear level, the flagship crypto is still “perfectly holding this inverted resistance level”, around $108,000, and holding it as support.
“I don’t know if this is the time to turn bearish. Support remains support, until it isn’t,” the analyst said. Altcoin Sherpa also shared a positive outlook, pointing out that BTC’s chart doesn’t look “that bad when you zoom out” as it remains in the same price range over several months and could challenge the $114,000-$115,000 zone.
Still, the analyst cautioned that it may be “too early to really talk about any bullish reversal,” predicting that the cryptocurrency will likely see “a ton of decline over the next 6-8 weeks, and we’re in the 100,000-115,000 range and we’re hoping to have a good December.”
The $114,000-$116,000 zone remains key
Rekt Capital said that as long as the price holds at current levels, it could move towards the $114,000 area for a continuation of the key trend within its range and potentially revisit highs.
To achieve this, the analyst explained that Bitcoin must reclaim its 21-week exponential moving average (EMA) as support, which was lost after Sunday’s close below $110,000. The 21-week EMA has served as support during pullbacks since the end of the second quarter.
He explained that the cycle was marked by downward deviations, with prices closing each week below key levels and positioning themselves for a bearish retest before managing to reclaim those levels as support and move higher. Based on this, “it is not a given that price will be rejected from the 21-week EMA.”
The analyst also shared an outlook for BTC’s range during the monthly period, where it has consolidated while extending upward beyond the range’s high and moving below the range’s low since July.
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“As part of this consolidation, there is potential for the development of a lower low that is not yet solidified; the next monthly close will inform more on whether this will indeed become resistance,” he detailed.
Rekt Capital concluded that a monthly close above the low would invalidate the potential setup, and that a close above the high resistance of the range would position Bitcoin for a breakout of the range, “especially if a retest of $116,000 after the November breakout takes place.”
At the time of writing, Bitcoin is trading at $110,850, an increase of 2% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
