Bitcoin (BTC) hit a multi-day high of $ 58,300 overnight on November 25th, with investors betting on a lower likelihood of another big drop in prices.
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD was above USD 57,000 on Thursday, printing a higher low on the daily chart.
According to the trader and analyst Rekt Capital, this shows that support is “solidifying” at the current level, and hope therefore remains for a more convincing trend reversal.
“Bitcoin has certainly solidified its support here, created a long downward wick into the bottom of the black wedge structure and rebounded strongly,” he said told Twitter followers.
“In addition, today’s candle forms a higher low compared to yesterday’s candle.”
Sentiment was shared by crypto trading firm QCP Capital, which on Wednesday summarized the likely near-term results.
“So far, selling pressure has effectively limited any rally. The question is whether this will lead to a downward break,” he wrote in a market update to the Telegram channel’s subscribers.
“We bet the market will consolidate rather than break down.”
As Cointelegraph reported, this week mixed signals from the exchanges about selling pressure, with large inflows and outflows marking a very active market.
Nevertheless, volatility remains at its lowest level in over half a year, which reinforces the relatively stable price conditions.
Weak altcoins under the direction of Solana support retesting
Among the top ten cryptocurrencies by market capitalization, Binance Coin (BNB) became the only standout, increasing 8% over the week.
Related: Bitcoin price metric calls for a “strong response” as $ 56,000 BTC looks “seriously cheap”
Other tokens remained unchanged or recorded minor losses, led by Solana (SOL), which slumped nearly 7% to nearly $ 200 that day.
For fellow trading and analyst Pentoshi, macro factors could still lead to a more definitive stoppage in the crypto bull run.
“The funniest end to a crypto bull would be double digit inflation and people don’t understand why this can be bearish for asset risk,” he commented in a Twitter thread originally started on November 16th.
“Exactly what people encourage at the expense of others can be exactly what ends this cycle.”
On Thursday, he affirmed the potential for deflation in 2022.