Bitcoin (BTC) hit multi-day highs of $58,300 overnight into Nov. 25 with investors betting on reduced likelihood of a further major price dip.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD ranging above $57,000 Thursday, printing a higher low on the daily chart.
This, trader and analyst Rekt Capital believes, shows support “solidifying” at current levels, with hope therefore remaining of a more convincing trend reversal.
“Bitcoin has certainly solidified its support here, producing a long downside wick into the bottom of the black wedging structure and rebounding strongly,” he told Twitter followers.
“Also, today’s candlestick is forming a Higher Low relative to yesterday’s Daily candle.”BTC/USD 1-day annotated candle chart (Coinbase). Source: Rekt Capital/ Twitter
The mood was shared by crypto trading firm QCP Capital, which on Wednesday summarized the likely short-term outcomes.
“So far, the selling pressure has effectively capped every rally. The question is whether it will lead to a downside break,” it wrote in a market update to Telegram channel subscribers.
“We are betting that the market will consolidate instead of breaking lower.”
As Cointelegraph reported, mixed signals played out from exchanges over selling pressure this week, with large inflows and outflows marking a highly active market.
Nonetheless, volatility remains at its lowest in over half a year, reinforcing relatively stable price conditions.
Bitcoin volatility chart. Source: Buy Bitcoin Worldwide
Limp altcoins led by Solana support retest
Out of the top ten cryptocurrencies by market cap, Binance Coin (BNB) thus became the sole standout, up 8% week over week.
Related: Bitcoin price metric demands ‘strong reaction’ as $56K BTC starts to look ‘seriously cheap’
Other tokens were flat or saw minor losses, led by Solana (SOL) which dived nearly 7% on the day to near $200.
SOL/USD 1-hour candle chart (FTX). Source: TradingView
For fellow trader and analyst Pentoshi, macro factors could yet cause a more definitive stalling of the crypto bull run.
“The most hilarious ending to a crypto bull market would be double digit inflation and people not understanding why that can be bearish for risk on assets,” he commented in a Twitter thread originally begun on Nov. 16.
“The very thing people cheering on at the expense of others Can be the very thing that ends this cycle.”
On Thursday, he reiterated the potential for a deflationary spell to emerge in 2022.